Tax Efficient Company CarsIt can be confusing whether or not to introduce company cars into your business. Equally confusing can be what company car tax employees should then pay on the specific car models. In this article we look at company car taxes from a business perspective and also that of the employee ie. an individual provided a company car for private use (which includes commuting).

For employees considering a company car, jump to the BIK section using the TOC above

There are essentially three main tax efficient areas to consider when making the decision to add company cars to a business: –

  1. Reduce Corporation Tax via Capital Allowances – princip