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.

However, for those looking to reduce their carbon footprint, providing a zero or low-emission car to a worker can be highly tax-efficient.

Read our article to understand why this is the case and understand how the car benefit in kind is calculated.