When may an employer withdraw the use of a company car?

If a company car is supplied purely for business use, it can be withdrawn during periods when the employee is not at work, for example during holidays, a period of garden leave or paid suspension. When a car is supplied for private use, it is a part of the employee's contractual entitlement and cannot be withdrawn in this way. A company car is, however, taxable when supplied for private use. The contract of employment should set out the use to which the company car will be put and specify other details such as the type of car that will be provided and when the car will be replaced.