Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Ltd Company: Can you really buy a car and get tax relief — or is that a myth? 🚗💼 Well: It depends..

6 Feb 2026 · 2 min

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1:30

In this concise video, Dr. Andy Grimm, founder of MoneywiseDoctor.com, answers whether a limited company can purchase an electric car in a tax‑efficient manner. He confirms that it is possible when the vehicle is used for business purposes and outlines the key tax benefits: a 100 % capital allowance allowing the full purchase price to be deducted from company profits before corporation tax, which can translate into substantial tax savings (e.g., a £40k car could reduce a £100k profit, saving roughly £10k at a 25 % corporation tax rate). Grimm also discusses the benefit‑in‑kind (BIK) charge that the government imposes when a company car is used personally, noting that the BIK liability is often modest (a few hundred pounds) compared with the larger corporation tax saving. He advises viewers to consult their accountants to calculate the exact BIK amount and to consider the overall net benefit. The video ends with an invitation for viewers to share their own experiences of using a limited company to buy an electric car.

Chapters

So can you use a limited company to buy an electric car in a tax efficient way? Hello, I'm Dr. Andy Grimm, founder of MoneywiseDoctor.com and author of the Moneywise Doctor who is an Amazon bestseller. So the resounding answer to that question is yes, you can use your limited company to buy an electric car if it's used for your company's business. Now if you're local and you need a car to travel, of course you can do that. And what you get, you can get 100% capital allowance. What that means that if you bought a car for 40k, your company made a profit of, let's say 100k. 40k can be deducted from the profit of your company as an allowable expense before you have to then pay tax on what is left. So if you did not 40k, if your corporation tax is going to be 25, that saves you 25 of 40k. That's a massive 10,000. And we've not even looked at the dividends you would have had to pay on the profit. Now many doctors have said, my accountants say, oh there's no point, you still have to pay benefit in kind. Now, benefit in kind is the government saying, well this was for your company, but use it for your benefit, so pay some more tax. But many haven't actually gone the far. The, the next step to ask accountant, how much benefit in Canada am I going to pay if it turns out I'm just going to pay like 200, 300, 400 or even 700 in the tax here, but that saves me 10,000 in taxes. That might be something to consider. So I'm just curious, have you used a limited company to buy an electric car? These are limited comp in the back.