LEX Vehicle Leasing has launched a new service to offer benefit-in-kind tax-free motoring to drivers of 18,000 of its vehicles who face higher tax bills under the new carbon dioxide-based regime.

The scheme, called fLEX, is part of a new structured personal leasing service to be launched next month, YourChoice.

Under the new system, companies signing up to YourChoice can switch staff from their current contract hire arrangement, into a personal leasing scheme, without incurring any early termination penalty.

As a YourChoice customer, drivers will have insurance, no-recharge maintenance and car finance included in their monthly payments, but because the outstanding debt for the car has passed to them, rather than the company, they will not pay benefit-in-kind tax.

Marketing director Steve Hornsey said: 'Since October, we have been piloting the product with a number of existing customers and their response has been fantastic.'