Thinking about getting a new company car or van? The rules around taxation, VAT, and purchase options can be more complicated than you might expect.
In our latest podcast, we break down everything you need to know to make smart decisions and save money.
In this episode, the team covers:
- The difference between cars and commercial vehicles (why whether you have seats or goods capacity matters)
- How purchase methods (buy outright, lease, PCP) affect your tax and VAT relief
- How electric vehicles compare in terms of tax and benefit in kind rules
- What benefit in kind means for company cars, especially for employees and directors
- When salary sacrifice schemes make sense for EVs, and what to watch out for
Watch the full video here:
Key Insights for Your Business
If you own a business, are a sole trader, partnership, or limited company, here are a few quick takeaways:
- Always check how a vehicle is classified. It changes what tax reliefs you can claim.
- For electric vehicles, the tax benefits are improving, but the rules vary depending on items like CO₂ emissions and list price.
- Leasing, outright purchases, or PCPs all have different cash flow implications and tax treatments.
- If your company allows private use of a vehicle, that will affect what you can legitimately claim.
- Consider salary sacrifice if an EV is an option, but plan carefully (for example, how the reduced salary may affect mortgages or minimum wage compliance).
SeavorChartered is committed to helping you navigate these complicated rules so you make the best decision for your business. Feel free to contact us if you want help working out how this applies to your situation.
