A company can pay for anything for its Directors and Employees as part of their remuneration package and this expenditure will be tax deductible for Corporation Tax.

However we need to also think about Benefit in Kind Tax which is paid through P11d. Here HMRC expects us to put a value the benefit of having the car and pay PAYE and NI as if the Director or Employee had had the equivalent in salary.

The value of the benefit is determined by a number of different factors including the list price of the car, its energy efficiency and age. HMRC give us a calculator to evaluate this.

At time of writing the proposition is mostly only attractive for fully electric cars.