TAX: Company cars are a thing of the past
Once upon a time it was something to aim towards, a good monthly salary and a company car.
However, over the past few years the company car is becoming extinct, as it is simply being taxed out of the market. Even low emissions cars, which in recent years many people were investing in to take advantage of tax breaks, are less attractive then they used to be.
The future looks bleak too as tax rates on company cars are set to rise further and except for specific circumstances will it be beneficial, from a tax perspective, to own one.
The solution, for those who drive occasionally for business purposes, like many doctors and dentists, is to own your car personally and charge 45p per mile for any business mile. This reverts to 25p for miles reached over 10,000 within the year.
Rarely will this cover the maintenance costs. And remember, travel from home to work is not allowable either.
Read more on the tax treatment of travel expenses for doctors and dentists to ensure you are claiming correctly.
For help with the complex calculations around company cars, Lansdell & Rose can help:
T: 020 7376 9333