It depends on the type of car you are considering. Generally, cars which run on petrol or diesel alone are not worth running though a company; the benefit in kind (BIK) tax is too expensive. Hybrid cars and pure electric cars are very tax-efficient, and therefore might be worth putting though a company. read more

Generally, there is a tax advantage for businesses operating though a limited company because the rate of Corporation Tax paid by companies is lower than the rate of Income Tax and National Insurance paid by sole traders. However, a limited company comes with various complications which means this option not right for everybody. Our advice will be tailored to your individual situation.

To pay an employee you must set up a payroll scheme which is registered with HMRC. You must ensure that the employee is paid at least the statutory minimum wage and you are responsible for making deductions for Income Tax and National Insurance, if appropriate. You must also set up a workplace pension scheme if your employees earn enough.