Purchasing a car through a limited company
17 Oct 2025
17 Oct 2025
14 min. read
| Outright purchase | Leasing |
|---|---|---|
Upfront cost | Higher (full price) | Lower (deposit and monthly fees) |
Ownership | Yes (asset on your balance sheet) | Operating lease: No (return at end) Finance lease: Yes (option to buy at end with a final payment) |
Tax relief | Capital allowances (100% for EVs) | Monthly payments are tax-deductible |
Best for | Long-term use, high mileage | Flexibility, lower risk |
| Company car | Personal car + mileage claims |
|---|---|---|
Upfront cost | Business pays | You pay (claim 45p/mile for business trips) |
Tax efficiency | Better for high mileage and EVs | Simpler for low mileage |
Admin | More (P11D forms, VAT records) | Less (just track mileage) |