If it's company owned but the director pays the same rental as any contract user pays (arms length negotiation, including VAT), then I can't see how the revenue can complain.
You win at the end when you sell it, can offset costs, save on the maintenance (VAT) etc., just take the hit on the flights, don't ever fly it for free otherwise (as has been pointed out) you'll be taken to the cleaners.
BW