This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Company Car Tax

Joined:Fri Jul 07, 2017 9:37 pm
Company Car Tax

Postby gusmac26 » Mon Jun 24, 2019 12:42 pm


We are a small business and I am looking to purchase a Tesla as a Company Car.

My thinking is as follows: Re the purchase of the car, I thought it would be beneficial to put through the company and utilise the capital allowance. High level my thinking was as follows:

List Price say £50k
Capital Allowance = £50k, therefore, saving in tax is £9.5k saving in Corporation Tax.
Company Car tax would then be circa £1.5k this year and then drop next year to £205.

Does this make sense or am I missing something? Re the running of the car... the option of 45p per mile etc - understood. But my thinking is on the purchase there should be better advantages.



Joined:Wed Aug 06, 2008 3:49 pm

Re: Company Car Tax

Postby jvenegas16 » Thu Sep 24, 2020 10:00 pm

You are missing the private use of the car and the benefit in kind

Joined:Wed Aug 06, 2008 4:01 pm

Re: Company Car Tax

Postby robbob » Fri Sep 25, 2020 9:15 am

You are missing the private use of the car and the benefit in kind
Presuming you are limited then there is the p11d benefit issue as jvenegas16 advised thankfully with the 0%/1%/2% current rates this year and next 2 - the tax charge will be relvatively modest . Note p11d benefit at your tax rate on you and also 13.8% class1 paid by employer.

Overall a good choice for companies tax wise and you getb to sample some of the Tesla magic to boot - (who doenst need their car to do farting noises on demand?)

If you have second car that you can use for material business trips then you can still portentially claim some 45p per mile if you really want to pimp out the tax aspect.

If you are sole trader perosnal use adjustment will be needed for all car related claims - so if you have high % private mileage that could be an issue. Hopefully you have company so you and your cars fun farfting time off the clock isnt compramised.

Return to “Company Taxation”