If as director and sole shareholder of a limited company (in the UK) I want to purchase (or possibly even lease) a car for my use, will I be taxed as an employee for having the use of the vehicle and if so, how would that be calculated?

  • 1
    Stay away from it. The car provided will be classified as benefit and you pay Class 1A NI on it. Best option is claim mileage. Any sane accountant will tell you to not buy the car on company's account.
    – DumbCoder
    Mar 20, 2018 at 15:53

1 Answer 1


This subject is covered extensively here: https://candmservices.co.uk/tax-and-the-company-car/

Note the particular quote:

Remember that as a company director, a leased car will still be reportable and taxable as a benefit in kind.

This means you will need to calculate the corporation tax saved on the lease costs against your personal tax bill and employers national insurance on the P11D.

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