It’s nice to have a company car, but they do tend to be more functional than exciting, don’t they? Why then, don’t you have a second company car for weekends and social occasions and make it a classic car, that is, a car over 15 years old.
This can open up a whole new world as you park up your Ford Sensible (made-up name!) on a Friday and take your 1965 Jaguar E-type out for a spin.
Very good for the image and relatively cheap to run as the company can pay for the running costs, but ,very important, not the petrol.
Main conditions
- The car must have a value of less than £15,000
- It must be over 15 years old at the beginning of the tax year
- You must pay for your own petrol to prevent a car fuel scale charge
(expensive, so don’t go there!)
How much will it cost in tax?
This is the good news. If the criteria are met, the benefit is calculated on the original list price, which may have been, say, £2,000 in 1965.
For higher rate taxpayers, the scale charge is just £700 (35% of £2,000), giving rise to a tax bill of £280 (40% of £700). Not bad value!
Now that’s what we call a classic!
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