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To qualify for a company car, employees usually have a permanent position within the business and have a regular work pattern.
Company Car Drivers
Our business experts can provide you with the best finance options to suit your needs, including bespoke packages.
If you are a company car driver, you deserve a car that meets your needs and expectations. A company car that is comfortable, safe and reliable. A car that saves you money on tax and fuel. A car that makes you happy every time you drive it.
That's why we are here to help you find your perfect company car solution. We have a wide range of vehicles to suit your budget and preferences. From plug-in, all-electric and hybrid models to compacts and SUVs, we have something for everyone.
Our business experts are ready to assist you with any questions you may have about finance options, running costs or tax implications. We can also offer you bespoke packages and award winning service to make your experience hassle-free.
Don't settle for less when it comes to your company car. Choose us and enjoy the benefits of low running costs, innovative tech and a whole lot of fun behind the wheel.
Our dedicated Business Development Managers are on hand to answer your questions and help you find your perfect company car solution. Our business experts can provide you with the best finance options to suit your needs, including bespoke packages.
If you’re thinking about setting up a company car scheme but don’t know where to start, please reach out to your local business development manager at Lloyd Motor Group. Browse all of our locations to find your nearest retail centre.
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How Does a Company Car Scheme Work?
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Once employees join the scheme, their wages must not drop below the national minimum wage.
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A company car is considered a privilege that is paid for by the employer, this is a benefit on top of their annual salary, and as such, employees who enter a company car scheme must also pay Benefit-In-Kind (BIK) tax.
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If your company car scheme includes fuel, employees will also need to pay tax on their annual fuel allowance.
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The amount of tax owed on company cars is based on carbon dioxide emissions and the list price. Different rules apply according to the type of fuel used. Rates may go up or down over different tax year.
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Our business vehicle experts can provide you with the best finance options to suit your needs, including bespoke packages.
What are the benefits of a company car?
No Financial Ties for the Employee
As the vehicle is leased through the business, the employee is not personally tied into a financial contract.
It is the company's responsibility to make sure the monthly payments are made on time, as well as any maintenance, servicing or MOT obligations.
No Unexpected Costs
If you are driving a company car, your employer will usualy cover insurance, car tax, servicing and maintenance.
Some companies also include a car fuel benefit, which often makes fueling your car cheaper, as fuel rates are based on a flat rate.
Low Benefit-in-Kind Rate
Tax rates are usually a small percente of a cars final cost.
This tax amount will be calculated from the vehicles CO2 emissions, fuel type and income tax rate.
Tax rates on electric and hybrid vehicles will be lower than other fuel types.
Recruitment Incentives and Employee Retention
A company car scheme is a great way to attract and retain members of staff.
A company car is an excellent way to show your current employees that you appreciate their hard work and set an example for new employees.
Company Car Tax Benefits of Electric Vehicles
Outright Purchase |
Hire Purchase |
Lease |
New Electric Vehicle Corporation Tax |
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| • First Year Allowance of 100% • When car is sold, corporation tax will have to be paid on sale proceeds. |
• First Year Allowance of 100% from profits before tax. • Corporation tax savings on the interest on monthly payments. |
• Monthly rental will be included in P&L as an expense which reduces company profit and therefore corporation tax. |
New Electric Vehicle VAT |
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| • VAT can be reclaimed if the car is for business use ONLY. | • VAT can be reclaimed if the car is for business use ONLY. | • Can reclaim 50% of the VAT from the lease payments if private and business use. • Can reclaim 100% if the car is for business use ONLY. • 100% of VAT can be reclaimed for maintenance. |
Current Offers
Our expert team is here to help you find the right new business car with our exclusive offers. Putting your fleet needs and business priorities first.
Browse Business OffersElectric Company Car Benefits Continued
Used Vehicle Corporation Tax |
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| • Capital Allowances available at a rate of 18% per year on a reducing balance basis. | • Capital Allowances available at a rate of 18% per year on a reducing balance basis. • Corporation tax savings on the interest on monthly payments. |
• Monthly rental will be included in P&L as an expense which reduces company profit and therefore corporation tax. |
Used Vehicle VAT |
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| • No VAT can be reclaimed unless car is a VAT qualifying car and is for business use ONLY. | • No VAT can be reclaimed unless car is a VAT qualifying car and is for business use ONLY. | • Can reclaim 50% of the VAT from the lease payments if private and business use. • Can reclaim 100% if the car is for business use ONLY. • 100% of VAT can be reclaimed for maintenance. |
Electric Used Cars for Company Cars
Whether you're looking for a compact city car or a spacious SUV, we have the perfect electric vehicle to fit your business needs.
Browse Used EVsMore Benefits of an Electric Company Car
VAT |
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| • If the business pays for the repairs and maintenance of its EVs, and the EVs are used for business purposes, the VAT you are charged is recoverable as input tax. • If vehicle is charged at workplace, can claim VAT on both personal and business use, but the business would be liable for output tax charges on any private use. |
Vehicle Excise Duty (VED) |
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| • Electric vehicles are exempt from VED, until 2025. | ||
BIK |
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| • List price of the car x 2% (current BIK rate for electric cars until 2025) x 13.8% (Employers NI rate). • The installation of a charging point at an employee’s home address associated with the provision of a company car is not considered a benefit-in-kind. |
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Mileage Rates |
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| • Mileage on electric cars is calculated using a flat rate of 9p per mile for employer-provided vehicles. Compared to the standard rate of 45p per mile. Or 25p per mile after 10,000 miles, for employee-provided vehicles. |
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Electricity Expense |
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| • Electricity expense is fully tax deductible for the company. | ||
Workplace Charging Scheme (WCS) |
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Company Car Mileage Rates
HMRC reviews company car mileage rates on a quarterly basis:
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1 March
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1 June
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1 September
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1 December
These will differ, depending on your company car fuel type; electric, petrol and diesel, and will be dependent on the engine size as well.
Learn more about these rates at HMRC: https://www.gov.uk/guidance/advisory-fuel-rates
Contact our Lloyd Corporate Team for more information
Browse Company Car Offers by Brand
BMW Business Users
Impressively low BIK and emissions are ideal for BMW company car drivers and fleet managers.
Learn More
Land Rover Business Users
From individuals to fleets, our Business team are here to support your company car needs.
BROWSE
Kia Business Users
From individuals to fleets, our Business team are here to support your company car needs.
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Volvo Business Users
From individuals to fleets, our Volvo business team is here to support your company car needs.
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BMW Business Users
Impressively low BIK and emissions are ideal for BMW company car drivers and fleet managers.
Learn More
Land Rover Business Users
From individuals to fleets, our Business team are here to support your company car needs.
BROWSE
Kia Business Users
From individuals to fleets, our Business team are here to support your company car needs.
BROWSE
Volvo Business Users
From individuals to fleets, our Volvo business team is here to support your company car needs.
BROWSE
Company Car Finance
Looking to purchase your company car on finance? We have a range of business finance options available to you, including BHP and BCH.
Learn MoreOther Company Car Services
Small Business Owners
We have many vehicle leasing options if you're self-employed, sole traders or in a business partnership.
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Finance Options
We have a wide range of finance options available to suit your business needs.
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Fleet Servicing
Expert and highly-skilled technicians and parts specialists to care for and maintain your fleet of vehicles.
Learn More
Small Business Owners
We have many vehicle leasing options if you're self-employed, sole traders or in a business partnership.
Learn More
Finance Options
We have a wide range of finance options available to suit your business needs.
Learn More
Fleet Servicing
Expert and highly-skilled technicians and parts specialists to care for and maintain your fleet of vehicles.
Learn More
Customer Reviews
Fantastic service as always go above and beyond to help. Service team are excellent and very informative 👏
Kelvin Musgrave
Carlisle Volvo - November, 2024
Great service as always. Annabelle especially, nothing was a problem. No hesitation to repeat buy with this company.
Giles Vasey
Carlisle BMW - March, 2024
Polite, courteous and professional. Selling a quality product. One couldn't ask for more. Highly recommended.
James Watson
Carlisle MINI - October, 2024
Great Honda dealership with excellent staff.
Richard Lyall
Carlisle Honda Motorcycles - March, 2024
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