Businessmotoring-taxaspects

The tax treatment of a vehicle used in a business depends heavily on how it is owned and used. Company cars provided to employees and directors are generally treated as a benefit in kind, while vans and vehicles used mainly for business journeys can be treated differently, affecting both the business and the individual.

For sole traders and partners, and for employees using their own vehicle for work, mileage-based claims offer a simpler alternative to tracking actual running costs. Choosing the right approach, whether company-owned, leased or privately owned, can have a significant effect on tax efficiency, so it is worth reviewing before acquiring a vehicle.