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. 27 Feb 2025

    Major tax changes on Twin Cab Pickups

    From 6 April 2025 twin cab pickups will be classified as cars for capital allowances and BIK purposes - losing their 'commercial vehicle' status.

    Learn more

    Major tax changes on Twin Cab Pickups
  2. 24 Oct 2023

    What does ULEZ mean for your business?

    The latest ULEZ expansion means more businesses could face charges. Are you aware of the discounts your business could take advantage of?

    Learn more

    What does ULEZ mean for your business?
  3. 30 Jun 2021

    The pros & cons of electric cars

    Despite the potentially high personal tax charge, many employees still enjoy and prefer the convenience of being offered the use of a company car by their employer. Those employers familiar with the benefit-in-kind tax rules will be aware the tax... Read more

    Learn more

    The pros & cons of electric cars