Private use of company cars

Company cars not available for the full year

Your employee may not have use of the car for the full year. This may be because your employee:

  • received a car during the year
  • gave up a car before the end of the tax year
  • travelled abroad for work without the car.

Where this happens, you can reduce the cash equivalent to reflect the number of days your employee actually had the car.

Where this happens, you can ‘annualise’ the business kilometres to calculate the cash equivalent of the car. This allows you to see what the cash equivalent would have been if your employee used the car for the full year.

You can then reduce the cash equivalent by the number of days the car was not in use  that year.

Next: Exemptions