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Personal car or company car?

Shared from Tax Insider: Personal car or company car?
By Moneeza Siddiqui, March 2024

Moneeza Siddiqui compares the tax implications of a personal and company car when used in an individual’s employment. 

Given the reliance on and impact of cars, special tax rules are in place to manage the environmental footprint of vehicles. 

Going green 

Policies such as road tax exemption on electric vehicles (EV) and increased business allowance for cars with low CO2 emissions exist to encourage individuals and businesses alike to make eco-friendly investments in cars. 

Personal car used for employment 

When employees use their own car to carry out tasks related to their employment, they become eligible to claim an allowable deduction against employment income, reducing their taxable income. Job-related travel excludes home-to-office travel (and vice-versa) unless the commuting is to a temporary place of work. <> <

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