Employees need to pay tax if the company car is used privately because it is considered a benefit from the company.

How much company car tax an employee must pay depends on a few factors, including driver-specific parameters and the car’s Benefit in Kind value. You can see an estimated company car tax cost by using the calculator above.

Benefit in Kind is any non-cash benefit of monetary value that a company provides employees, including a car. The Benefit in Kind value of a car is determined by HMRC and varies between different cars based on the model, fuel type and other driver-specific parameters.