As director of your own limited company, any accountant will tell you that a conventional company car is an unwise and expensive option due to the company car tax rules, for further details on this read the tax and company car section on our site. Also, you may find our company car and van tax benefit calculator useful.
A more tax efficient way is to buy the car yourself and then claim back the miles and running costs, which range from £0.25p – £0.45p.
However, a healthier way to get to work is to cycle, it’s good for you and the environment plus there’s no road tax or congestion charge.
Just as it’s unwise to get the company to buy a car it’s no different when it comes to bicycles, your best option is to either use your old bike, providing it’s been well maintained and serviced or purchase a new one. Mileage of £0.20p can then be claimed. Although you don’t have to declare this on your P11d you must keep a record of your miles in case the Revenue question your claims.
If you would like to learn more about the Government’s special scheme regarding hybrid, electric and gas-powered cars, click on the following link: Company Cars.
If you have any question about contracting or would like any further advice please call our new business team on 01442 275789 or email: email@example.com.