Q. If my employer leases a car to me at the fair market value for such a lease, which I pay in full to the employing company, will I be taxed as if I had the use of a company car with no lease?

A. The law that taxes company cars was recently changed to ensure employees are always taxed on the provision of a company car, irrespective of how that car is provided. So although you lease the car from your employer you will still be subject to the benefit in kind charge, which is calculated as a percentage of the vehicle's list price when new. The percentage varies from 0% to 35% depending on the vehicle's CO2 emissions. Any amounts you pay to your employer for the personal use of the car reduce the benefit in kind charge, but you will not be better off using the leasing arrangement.

Q. There is an offer in my area to lease an electric car for two years, to help test the electric charging infrastructure installed by the council. Can my company take advantage of the tax breaks if I lease the car?

A. No. If the lease for the car is in your personal name your company cannot claim the 100% capital allowances which are available for electric and low-emissions vehicles. If the car will be used for your business we can help you crunch the numbers to see if it would be worthwhile for your company to purchase or lease the car and claim the allowances. However, from 6 April 2015 there will be a tax charge for your personal use of the electric car.