A company car is becoming a popular option for businesses in the UK with leasing a company car growing in popularity as well thanks to advantages for both employees and employers. Check out our guide on leasing your company car below.
There are currently over 800,000 company car drivers in the UK. If your employer offers a company car benefit, why not use your company car allowance to lease a car with Willow Leasing? There are many benefits of leasing a car for both you and your employer so why not check out more about company cars below?
A company car is a vehicle provided by a company for both business and personal use by an employee. It is usually offered if the job requires a lot of travel but can also be offered by the employer as a perk for working there.
You will need to pay tax if you have a company car benefit. This tax is calculated on the value to you of the company car; depending on things like how much it costs to buy and the type of fuel it uses. The value of the car that you are taxed for is reduced if the car is only used part-time, you pay something towards it, or it has low CO2 emissions.
When you first get a company car, you will need to inform HMRC and update your company tax online. If any adjustments occur which change the value of the car, HMRC will automatically update your tax code so that you pay the right tax amount.
HMRC offer a company car tax calculator that helps you estimate the amount of tax you might pay with a certain car – HMRC Company Car Calculator.
If you have any questions about leasing a company car, you can give us a call at 0345 350 3776, send us an email at email@example.com, or send us a message on our live chat service. If you can’t wait to get started with leasing a company car, you can check out our business contract lease deals here.