The Leaky Bucket

Should You Put a Company Car Through Your Own Company?

Ian Morgan

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0:00 | 12:30

In this episode, we explore the pros and cons of putting a company car through your business. We focus on two main types of vehicles: commercial vehicles and electric vehicles (EVs).


Key Points:


Commercial Vehicles:

•Offer significant tax benefits, including full tax deductions and VAT recovery (if VAT-registered).

•Typically exempt from Benefit-in-Kind (BIK) tax if used exclusively for business.

Electric Vehicles:

•Benefit from lower BIK tax rates due to their low emissions.

•Eligible for government grants and 100% first-year capital allowances.

•Lower running and maintenance costs compared to traditional fuel vehicles.

•Enhance your business’s green credentials.


Considerations:


•Personal use of company cars can lead to additional taxes (BIK).

•Weigh the cost vs. benefit of owning the car through your business versus personal purchase.

•Choose the right vehicle based on your business needs.


This episode helps business owners make informed decisions about whether putting a vehicle through the company is the right move, especially with the rise of commercial and electric vehicles.

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