If the car is provided by the employer, it is usual for the employer to reimburse expenses in connection with the employment. This would include covering the cost of:
- road tax;
- insurance; and
It is usual for the employee to fund their own fuel costs for private mileage (where permitted) and you should find out how personal usage is assessed and recorded.
HM Revenue and Customs counts the provision of a company car as a benefit, the cost of which, in accordance with a formula, is regarded as part of an employee's taxable income.
Payment of mileage allowance may be made to employees using their own cars during the course of employment. Above a certain mileage, or a rate per mile (45p per mile for the first 10,000 miles and 25p per mile after that), the allowance becomes taxable.
Reimbursement of car parking charges may also be made but would not be taxable.