Is car subscription the alternative company cars?

Ev company cars inclusive of full comp insurance can this be better for tax purposes

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Tax is always as an important issue, but HMRC doesn't seem to know how to treat this as a company benefit.  Any advice to maximise tax benefit to company and personal use?

Replies (4)

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By David Ex
31st Jan 2024 14:29

Not sure what car subscription is but, as with most tax questions, the devil will be in the detail of the arrangements.

One for your accountant to advise you on.

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By paul.benny
31st Jan 2024 14:50

Car subscription schemes appear to be just leases with more flexibility than the standard 3/4 year term (and so are more costly).

I see nothing that will alter the tax position, viz, that if employer is making a car available to employee, there is a taxable benefit on the employee and cost of providing the vehicle is an allowable expense for the employer.

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Replying to paul.benny:
By Jason Croke
31st Jan 2024 15:27

I've enquired with HMRC as to the status of car subscriptions (for VAT purposes) and HMRC concluded same as you, they're just leases, just more flexible, still no right to buy/own so is a supply of services with the usual 50% input tax block.

Thanks (3)
By David Ex
31st Jan 2024 15:44

Advocate wrote:

… HMRC doesn't seem to know how to treat this as a company benefit. 

Have you got a reference for this? Seems strange now other contributors have clarified the arrangements.

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