Company Car

Hi,

My company is looking to lease a smart car mainly for advertising purposes, however as most of our employees are under 25 the insurance costs have been quoted upwards of £4/5k per year on a vehicle that will be predominately static. If we insure the car for the sole use of one of the directors, who's annual salary is approx £5k would he be liable to pay taxation on the car and any fuel supplied?

HMRC's website states "There is a tax charge where, because of their employment, a car is made available to and is available for private use by a director or an employee earning £8,500 a year or more, or to a member of their family or household (a ‘company car’)." Does this mean as the directors earning are less than this that he would not be required to pay tax?

Any help appreciated.

Thanks