Sign written company vehicle-any tax advantage?

pennypincher_2

I'm considering downgrading my company vehicle to a Smart Car and having it covered in advertising for the business. Is there any tax benefit in my favour for advertising or will I just benefit from the lower P11D value?

sarahlouise210

I am assuming you do not own the company. I am not aware of any tax benefit of having advertising for the business on a company car - the advertising benefits for the business itself is a good incentive though. If you are happy to downgrade..are you able to downgrade to a van ?? The charge for a van is only £500 per year (taxed at your highest tax rate)..this reduces to £350 per year if the van is over 4 years old. Obviously this charge is a lot lower than even a smart car would be.

paulus

There's absolutely no tax saving in car tax for using a company car which advertises the business. If it is available for private use the normal car tax provisions will apply. If a van is a consideration bear in mind that the charge increases to £3000 (plus £500 fuel) from April 2007.

pennypincher_2

Thanks for the info ,I currently have a company car with a high P11D value of approx 14k, I really can't justify its cost to me as i hardly ever use it hence the alternative choice.Maybe I'll pass on the advertising for now.