Whether VAT applies when selling a company car depends on how it was purchased and whether VAT was recovered. Applying the correct rules helps businesses avoid errors and ensures proper VAT treatment.
Some company car benefits can be exempt from tax when strict conditions are met, including business‑only use, adapted vehicles, and pool cars.
Exempt
Choosing an electric company car can cut tax costs dramatically. Lower CO₂ emissions mean BIK rates start at just 3%.
Employees using company fuel for private journeys can sidestep a hefty benefit charge by repaying the full private fuel cost to their employer by 6 July 2025. Miss the deadline, and tax becomes unavoidable.
This article explains how to manage the tax implications of using a company car for private travel, including the use of HMRC’s online tool to check and update tax details.
Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn what steps to take for private use and specific exemptions.
Where an employee with a company car is provided with fuel for their own private use by their employers, the default position is that the employee is required to pay the car fuel benefit charge.
Report company cars for private use to HMRC using a P46 (Car) form. Notify for new cars or changes. End-of-year reporting includes Class 1A NICs on car benefits. Additional NICs for company-paid private fuel.
Company car users may face car fuel benefit charges based on CO2 ratings. Repaying private fuel at advisory rates can help avoid this charge, offering potential tax savings, especially for low private mileage.
Where an employee with a company car is provided with fuel for their own private use by their employers, the default position is that the employee is required to pay the car fuel benefit charge.
Most employers and employees are aware of the additional costs of providing company cars and the tax implications they create. There are circumstances where it can be possible to offer employees car benefits that are exempt from tax.
If you are thinking about purchasing a company car through a limited company, there are many issues that need to be considered. In this short article we will point out some of the main issues to be aware of, but it is important to properly research
There are a significant number of reliefs available to businesses that suffer losses. Certain losses that your company has not used in any other way can be carried forwards against profits in future accounting periods.
Explore Corporation Tax relief for trading losses. Offset against profits, reclaim tax, and learn about early claims, evidence requirements, and eligibility criteria.
HMRC is consulting on changes to company distribution rules and share buybacks, which could mean more Income Tax for shareholders. Find out what HMRC is proposing and who it could affect.
Corporation Tax rates range from 19% to 25%, with marginal relief smoothing the gap between the thresholds. Is your company paying Corporation Tax at the right rate? We explain the thresholds, the 3/200 fraction and how associated companies affect your position.
A company can be dormant for Corporation Tax once it stops trading and has no other income. When is a company dormant for Corporation Tax? We explain what counts as trading, how to tell HMRC, and the Companies House and VAT duties that continue.
Discover how tax breaks for company bikes can benefit your business and your staff. Learn how the Cycle to Work scheme works, which conditions apply, and how salary sacrifice delivers valuable tax and National Insurance savings.
Are you maximising tax relief on company losses? Discover how UK companies can use trading losses to reduce Corporation Tax, secure repayments and support cash flow. Learn how to offset losses in the current period, carry them back or carry them forward, and understand the key restrictions and calculations involved.
A clear guide to company mobile phones and tax implications, covering the HMRC exemption, reporting duties, salary sacrifice arrangements and what employers must do when employees hold the contract.
Many small companies qualify for audit exemption, but some still require a statutory audit. Checking your company’s status each year helps ensure full compliance.
Employees can often avoid the car fuel benefit charge by recording private mileage accurately and reimbursing all fuel used for personal journeys.
Learn which taxable company benefits apply to cars, loans, and accommodation, and discover key exemptions.
Company Voluntary Arrangements help struggling businesses repay debts over time, but require director agreement and creditor approval.