A benefit arises on the provision by an employer of a car for the employee's, or a member of their family's private use. This is described informally as a 'company car', though employees who are not employed by a company are still subject to the same rules. The calculated benefit is usually included in the employee's PAYE code, although it can also be voluntarily payrolled (see PBIK, 4.1).
It does not matter whether the car is owned by the employer or leased by the employer from a third party. In each case, the employee will have a taxable benefit in respect of the private use of the car. The provision of fuel for private use
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 15:34