Unless the car is available for business journeys only;
The company will need to –
Report it to HMRC when purchased.
At the end of the tax year, report it on form P11D.
Pay Class 1A National Insurance on the value of the car and fuel benefit.
The employee will have to –
Pay tax on the “benefit in kind” value of the car and (if the company also provides fuel for the car, which is not reimbursed) on the fuel it uses.
HMRC provides a calculator to enable you to calculate the “benefit in kind” value of both the car and fuel here.
One other point, leasing (or hiring) a car is an allowable expense and so tax-deductible; however, since April 2021, you have to disallow 15% of hire charges or rental costs if your vehicle’s CO2 emissions are more than 50g/km.