Just Because It Worked for Dave Down the Pub… Why Company Cars Can Be a £48,000 Mistake

I’ve helped thousands of business owners over the years, and when it comes to company cars, I’ve seen the same mistakes crop up again and again. 

Mistakes that have cost people £5k… £10k… even £48,000 a year (yes, really). 

Here are just a few of the most common traps: 

The wrong car in the wrong name 

That shiny petrol or diesel car might look great on the driveway, but if it’s run through your limited company, it can trigger a huge Benefit in Kind (BIK) tax bill. 
In some cases, the tax is worth more than the car after a couple of years. Ouch. 

The double cab pickup change 

Before April 2025? It was a tax-efficient dream. 
After April 2025? The rules changed. Many pickups are now taxed like cars, not vans, wiping out the previous savings. 
Most people don’t even realise the goalposts have moved. 

Following your mate’s advice 

Greg from your networking group says, “I just put all my car costs through the company.” 
What Greg doesn’t realise? 
His accountant is charging it all to his director’s loan account. 
So he’s still paying for it personally, just with added tax complications. 

Assuming your accountant will ‘just tell you’ 

A lot of accountants give the stock answer: 

“Buy electric. Put it through the company.” 
And that advice might be right. 
But it also might cost you thousands if it’s not tailored to your specific situation. 

• Your tax bracket 

• Your business mileage 

• The type of car 

• How it’s financed 

They all matter. And there’s no “one-size-fits-all” answer. 

So what’s the takeaway? 

Just because it worked for Dave down the pub in March 2025, doesn’t mean it works for you, now. 

The tax rules change. Your circumstances are different. And HMRC doesn’t accept “But my mate said…” as an excuse. 

Thinking about a company car? 
Before you commit, get proper advice. 
The right setup can save you thousands. 
The wrong one… well, just ask the guy who paid £48k in tax last year.