Buying a car through your limited company can sound like an obvious way to save tax... but whether it actually makes financial sense depends on the car you choose, how you buy it and how you use it.

We've created this free guide to help you understand the rules in plain English before you commit to a purchase or finance agreement.

Inside, we'll walk you through:

• how company car Benefit in Kind (BIK) works;

• the 2026/27 BIK rates based on CO₂ emissions;

• why the car's original list price matters;

• worked examples showing what the tax can actually look like;

• why electric cars can be particularly tax-efficient;

• the Corporation Tax relief available to the company;

• how VAT works when buying or leasing a car;

• the difference between buying, leasing and financing;

• what happens if the company pays for fuel or electric charging;

• owning the car personally and claiming business mileage instead; and

• the information to give your accountant before you buy.
  

We've also included links to useful HMRC tools and resources so you can check the figures for a particular vehicle.

This guide relates to the 2026/27 tax year and is for general information only. It does not constitute personalised accounting or tax advice. 

By downloading the guide, you'll also hear from us every now and then with the odd email - think useful tax tips, business updates and other bits we genuinely think are worth sharing. No daily spam, we promise!