We are often asked by business owners whether it would be beneficial for them to run their car through their business. Our tax experts have created a free downloadable guide on the taxation of company cars, which covers all the points that you need to consider when deciding whether to operate a company car.
The taxation of company cars is complex, especially when factoring in fuel. In many instances especially where the vehicle is intended for the business owner and the business operates via a Limited Company, we recommend personal ownership to avoid the benefits in kind legislation.
Our head of Tax, David Evans gave his view
Recent announcements by the Government to continue to support ultra-low emission vehicles are welcomed. The Benefit in Kind percentages have done much to encourage manufacturer innovation and uptake of low emission vehicles into company car fleets over the last few years. However, it’s still the case, that the benefit percentages for all vehicles are rising sharply over the coming 3-4 years, which may dampen enthusiasm among employers who provide company cars. Before providing company cars, employers should look for vehicles with the lowest CO2 emissions and consider the benefit in kind charges for the duration of the vehicle lease.”