Readers’ forum: Concern about structure of proposed new scheme

I am currently working with a consultant in designing a company car scheme for my corporate client.

The client wants to structure the scheme so that employees are able to choose from a list of cars according to their level of seniority but they want to give employees the option if they want a higher specification car to pay a monthly supplement.

The consultant has explained to me that if the payment is described as a payment for private use it can be as a deduction against the benefit in kind on the car whereas if it is a payment for having a better car it is not deductible. He tells me that this is the way everybody structures this type of arrangements.

Is he right about this? I’m not comfortable with describing the supplement in this way as manifestly it is not actually a...