If you have a company car, the value of that vehicle should be categorised as an asset. The asset will depreciate depending on its useful life. You will also have to consider if the car is solely being used for business purposes, or whether it is also available for employee personal use.

What's included

The cost of the company car that is used solely for business purposes qualifies as a legitimate business asset.

Any improvements to the car can also go towards increasing its value that is depreciated.

What's not included

Company Vans should be separated as they have different rates of tax.

Any related Vehicle Expenses such as petrol should also be categorised separately.

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