The tax benefits of driving a company car have been steadily reduced over many years. Most employers and employees are aware of the additional costs of providing company cars and the tax implications they create. However, for many employees the lure of having a company car means that this remains a very popular option. There are some circumstances where it can be possible to offer employees car benefits that are exempt from tax.These include:Cars available for business journeys onlyThis rule has been the subject of much case law over the years, but it has generally been established that to qualify for VAT recovery the car must not be available for any private use.This means that the car should only be available to staff during working hours for employment related duties or to travel to a temporary workplace. The business must also clearly tell their employees not to use the vehicle for private journeys and check that they don’t.Cars adapted for an employee with a disabilityThese cars are exempt only for private i.e, journeys between home and work and for travel to work-related training.Fuel paid for by employeesThe fuel benefit is removed when an employee pays for all their private fuel use or if the employer pays and the employee reimburses the amount (during the tax year).’Pool’ carsEmployers are not required to pay or report on ‘pool’ cars. These are cars that are shared by employees for business purposes only, and normally kept on your premises. Employers must ensure the ‘pool’ car rules are properly adhered to.Privately owned carsEmployers do not have to pay anything on cars that directors or employees own privately.