020 31 37 64 62
Online Accounting. Real Support.

Purchasing a company car

In the majority of cases a director / owner will not be better off buying or leasing a car through the company, even if it's used for business travel.

HMRC will view use of the car as a "benefit in kind" and the individual will be personally taxed on this as if it were salaried income.

We suggest that the vehicle is purchased personally and an expense allowance of 45p per mile (first 10k miles a year then 25p thereafter) should be claimed for business related travel.

This arrangement will also avoid additional complications and taxes if the car is sold in a few years time.