Trying to work out the implications - in terms of both tax and IR35 status - of a contractor (limited company) on a long term contract with a client, being provided with a lease car paid for by the client, but where the contractor then reimburses the client for the cost of the vehicle. The advantage to the contractor being that the lease risk remains with the client, and the client's existing (and therefore cost effective) relationship with the lease car provider.
Presumably if the car was just provided with no reimbursement of cost there would be a question over employment status (since cars are also provided to senior employees of the client), but does that fall away if the client is reimbursed?
Also I assume that the BIK to the contractor would still accrue and be an income tax liability of the contractor personally? And the cost of reimbursing the client would be a deductable (corporation tax) expense.
Any help / advice would be much appreciated.