If you buy a car via your own limited company, there are several tax considerations to consider. Read our no-nonsense guide to work out the real cost.
so you pay less income tax and National Insurance, and you get a shiny new company car. Bear in mind, though, that the car is still deemed to be a benefit by HMRC, so you'll still pay tax on it.
You can’t avoid it totally but you can considerably reduce your company car tax bill by choosing either a plug-in hybrid (PHEV) or an electric vehicle. This is because company car tax, otherwise known as benefit-in-kind or BIK, is calculated on the CO2 output of the car in question....
However, keep in mind that, again, you’ll have to pay tax on it, in addition to thecompany car taxyou’re already paying on the car you use privately. What about electricity forelectric carsor plug-in hybrids (PHEVs)? Well, if you can claim back the cost of charging up using a ...
any complex tax structures or engage in any aggressive tax planning or tax avoidance schemes. The deferred tax asset increased to £0.4m (2023: £0.1m) in the year, mainly due to the expectation that tax losses brought forward will be offset against future taxable profits (see note 8)....
Pros· Supremely low company car tax rates· Most EVs can travel more than 200 miles on a charge· Makes even more sense if you can charge at home Cons· Long waiting lists· Expensive to lease· Not ideal for high-mileage drivers Read more: The best electric company cars Hybrids and plu...