Every Small Business owner wants to know if it is tax beneficial to buy a car in company name or personal name. Which is more tax appealing.

 

Since the change in the government policy and their committment on going green buying a green car in the name of company can save you significant amount of taxes.

 

What we mean by green car is Car which has Co2 emission of less than 120gm per km. It also includes Electic and Hybrid Cars. The full cost of the cars is allowed as deduction from profit and these cars have very little benefit in kind tax implications. For eg. If john buys green car worth £30000 from the company he can save £6300 in corporation tax and wil involve very minimal charge on personal benefits.

 

To conclude government is net payer when you buy green car. So if you are thiniking of buying a car think twice.