A Company Car within a Limited Company - Uk tax advice for business owners

Hi, I'm Graham from Inca Chartered Accountants. Our limited company owners' ask us a lot about vehicles and their business. So this video I'm going to tell you whether it is beneficial to put a car through a company you own. The simple answer is -- it's probably not. It's down to the private use element, because any private use you have whether its 1 mile or 10,000 miles is going to incur a tax charge. And that tax charge is going to be based upon the value of the vehicle and its emissions. And it can be quite expensive. Not only are you going to pay tax but in addition to that the company is going to pay National Insurance charge which is nearly 15% of the value of the benefit. Now usually we can get you the money in a much more tax efficient way. There are circumstances where you can put a vehicle through and it is efficient, based largely upon the emissions. There are certain types of vehicles with very low emissions that can be extremely beneficial running through a business. Talk to your accountant about the specific one you have in mind. Another one that is interesting is vans. Pickups are actually classified as commercial vehicles and taxed accordingly. That means you can get full vat relief on them. As well as having only a certain amount of tax to pay which is usually a lot less than the running cost on a vehicle. So if you don't put the vehicle through what do you do? We'll you can claim a mileage rate. Business miles is currently 45 pence per mile and if a member of the team goes with you, you can have an extra 5p on top of that. But that has to cover all the costs of running it. Hope this has been useful. If you would like any more tax tips give us a call.