Company cars – part 1
Should you buy a car through your company
Do you save tax by having a company car?
These are two of the most commonly asked questions posed to us. In a series of articles we will try to provide you with information to help you make a more informed decision.
For many years it was very tax efficient to run a car through your own business, or to have a company car as an employee benefit. In recent times that has changed as consecutive Governments, of whatever political persuasion, have worn away the advantages.
The tax burden is not likely to get any lighter, whether you have a company car or not. Only recently it was announced that London’s congestion zone will also become an Ultra Low Emission Zone. From Monday, 23 October people driving older, more polluting petrol and diesel vehicles will be liable for the £10 T-charge (“toxicity”), on top of the congestion charge of £11.50, which has been in place since 2003. When the ULEZ comes into force in April 2019 it is planned to operate 24 hours a day, 365 days a year. Diesel cars more than 4 years old and petrol cars more than 13 years old in 2019 will have to pay an additional charge of £12.50 a day to enter London. The Mayor’s office plan to extend that further, possibly increasing the size of the Zone. And other cities and towns around the country are looking to follow suit.
But sometimes your company can still be the best way to own a vehicle. Often generic advice is inadequate and your individual position needs to be “analysed”.
There are a number of initial things to consider:
· Do you want to buy outright or on finance?
· Do you want to lease purchase or lease hire, or similar?
· Diesel or petrol!
· OR ELECTRIC
· Are you happy with a car with a low emission rating – or is performance all important
We will consider these and other related issues in a short series of blog posts.
For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230
For new enquiries contact us now
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