Tax implications of providing company cars

Does it pay off to provide low or zero-emission cars?

Offering a company car as a benefit can be a valuable and attractive perk to any valued employee.
Unfortunately, it is not necessarily a tax-free perk and it may be liable for PAYE because HMRC considers the private use of a company car to be a benefit-in-kind.

In some cases it can even be quite costly to the employee, especially if the company also pays for the fuel.

This free guide explores some of the tax implications around company cars, and the advantages being offered by looking at low or zero emission vehicles from April 2020.

Tax is a complex area, and you should seek professional advice before choosing to act.

Download our free guide to Tax implications of company cars

 

You might be interested in...

  1. Play icon

    16 Sep 2026

    Beyond the Books, Episode 9

    Financial planning is about more than investments. Learn how business owners and professionals can gain clarity, build confidence and make better decisions about their future.

    Watch now

    Beyond the Books, Episode 9
  2. What really counts as innovation for tax purposes?

    11 Sep 2026

    What really counts as innovation for tax purposes?

    Many businesses dismiss their innovation as "just part of the day job". But for tax purposes, innovation often hides in everyday problem-solving and technical improvements. Discover what really qualifies as R&D.

    Learn more

    What really counts as innovation for tax purposes?
  3. Building a Business That Doesn't Depend on You

    11 Sep 2026

    Webinar: Building a Business That Doesn’t Depend on You

    Could your business operate without you? Join our webinar in October to learn how to reduce owner dependence, strengthen leadership and build long-term business resilience.

    Learn more

    Webinar: Building a Business That Doesn’t Depend on You
  4. UK statutory audit vs group reporting: what international groups need to know

    02 Sep 2026

    UK statutory audit vs group reporting: what international groups need to know

    For international groups, uncertainty around audit requirements can create unnecessary pressure, duplicated work and reporting delays. This article explains the difference between UK statutory audits and group reporting.

    Learn more

    UK statutory audit vs group reporting: what international groups need to know