Company Car or Van
Can I have a Company Car?
It's one of the most popular questions we get.
If you are in the trades, a van is no problem.
A Car is a far more complicated question; It's down to the Car. and how much you earn.
Company Cars and Vans
A Company Car
One of the biggest questions from a Director is, can I have a company car?
Yes, you can have anything if you are happy paying the tax on it and the Company to.
Company cars are taxed personally and on the business, subject to government Eco Rules on vehicles, like Zero-emission vehicles.
The exception is Commercial vehicles, which are vehicles used in your daily business, such as a plumber, and there is no tax on the individual.
Commercial Vehicles
A Company van for a plumber is 100% tax-free; all costs, including fuel, are tax-deductible on the Company.
If you get a van and you, say are an Accountant, the costs of running the Van are tax-deductible, but you pay £3,500 BIK, at 20% = £700 and Fuel - £669 at 20% £134
The above is subject to Employer National Insurance 13.8%