Company Car Tax Explained 2025: What You Need to Know скачать в хорошем качестве

Company Car Tax Explained 2025: What You Need to Know

Want to learn more strategies on how you can pay less tax? We’re covering all aspects, UK, Offshore, Property and more inside The Tax Smart Club… Join now here - https://gettaxsmart.co.uk/ Property investor looking to work with a specialist accountant? Work with us here - https://jsmpartners.co.uk/join/ Thinking of leaving the UK? We offer advice to ensure you do it the right way and can help with getting set up in Dubai - https://jsmtax.com/international-tax-... The Most Tax-Efficient Company Cars for 2025 | Maximise Savings and Reduce Tax Choosing the right company car in 2025 can significantly reduce your tax burden and maximise your business savings. In this video, we break down the most tax-efficient company cars available, explaining how Benefit in Kind (BIK) tax works and which vehicles offer the best tax advantages. Whether you are a business owner, company director, or employee, understanding the latest tax rules can help you make an informed decision and avoid unnecessary costs. What You Will Learn in This Video: • How company car tax is calculated in 2025 and what has changed from previous years • The best electric and hybrid vehicles that attract the lowest Benefit in Kind (BIK) rates • The impact of CO₂ emissions on company car tax and how to choose a tax-efficient model • A comparison of electric, hybrid, and petrol/diesel company cars from a tax perspective • How HMRC’s tax bands and allowances affect your company car costs • Whether it is better to take a company car or opt for a cash allowance Understanding Benefit in Kind (BIK) Tax If an employee, director, or business owner is provided with a company car for personal use, it is considered a Benefit in Kind (BIK). This means tax is applied based on several factors, including: • The car’s P11D value (the list price including VAT and optional extras) • The CO₂ emissions of the vehicle • The fuel type (electric, hybrid, petrol, or diesel) • The individual’s income tax bracket In 2025, electric vehicles (EVs) remain the most tax-efficient choice, with BIK rates starting at just 2 percent, compared to much higher rates for petrol and diesel vehicles. Plug-in hybrid models may also offer tax savings, depending on their emissions and electric range. The Best Tax-Efficient Company Cars for 2025 • Electric Vehicles (EVs) – Benefit from the lowest BIK rates, zero road tax, and lower running costs • Plug-in Hybrid Vehicles (PHEVs) – Can reduce tax liability if they meet the latest efficiency standards • Low-Emission Petrol and Diesel Vehicles – Less tax-efficient but may still be viable for certain business needs Choosing the right company car can lead to significant tax savings each year. In this video, we analyse the latest models, compare costs, and provide expert insights on making the most tax-efficient choice. 🔹 Subscribe to my channel for more expert insights on tax-saving strategies and financial planning for business owners. 📩 Need tailored advice? Contact us today to discuss the best tax-efficient vehicle options for your business. Find me on Instagram @joshuatharby