Company Car

[Jd Cars 0]

Evening All !

Wanting some advice from anyone who has a company car through thier business ....

We are VAT registered and currently coming to an end on a private lease deal.

Looking at the VAT/ Tax implications on buying a new / 3 year old car / 4x4 or leasing.

Thanks in advance

 

[trade vet 702]

45 minutes ago, Jd Cars said:

Evening All !

Wanting some advice from anyone who has a company car through thier business ....

We are VAT registered and currently coming to an end on a private lease deal.

Looking at the VAT/ Tax implications on buying a new / 3 year old car / 4x4 or leasing.

Thanks in advance

 

Are you a ltd company.

[Jd Cars 0]

1 hour ago, trade vet said:

Are you a ltd company.

Not Currently, but thats not to say we wouldn't rule it out

[trade vet 702]

6 minutes ago, Jd Cars said:

Not Currently, but thats not to say we wouldn't rule it out

Sorry,only know about ltd company stuff.

[Mark101 536]

Go ltd - pay yourselves an allowance + mileage and buy/lease the cars personally.

That’s what I would do.

[Blenheim Car Sales 111]

I lease a car personally through Ltd company and  then use the 45p mileage allowance  to make it self funding 

 

if your sole trader its not a  company car its your car as your not in effect a company

[trade vet 702]

23 minutes ago, Blenheim Car Sales said:

I lease a car personally through Ltd company and  then use the 45p mileage allowance  to make it self funding 

 

if your sole trader its not a  company car its your car as your not in effect a company

“Lease a car personally through ltd company “,I am not sure what you mean,could you possibly explain,thank you.

[NOACROSS 414]

As I understand it :

Lease a new car inc vat through the business. Claim (part) of the vat back each month. You will need a small ish (apx £1600 against a 35? K car?)deposit and you can offset this also.  

As it is a company vehicle. used by all, you can claim the fuel costs back at 45 p a mile.

Therefore the actual cost to the business is negligible- especially taking into account how much you may have previously spent on fuel in the course of business use previously, and road tax and sometimes service plans are also included  

Me, I’m happy in my MK1 CRV Auto ;o p. (Do you still smoke that old Rav TV?)

Edited May 10, 2019 by NOACROSS

[Blenheim Car Sales 111]

22 minutes ago, trade vet said:

“Lease a car personally through ltd company “,I am not sure what you mean,could you possibly explain,thank you.

I think i may have explained it wrong its not what i meant

 

 

Well obviously i dont want to to pay company car tax and of course if the ltd company  applies for the lease then this automatically makes it a company car and i as the employee will pay tax on it as a benefit in kind

I prefer to lease it personally, Nothing to do with the ltd company its my own car on a personal lease, I can then charge my own ltd company 45 pence per mile for all business use and if i do enough miles it will pay for the monthly lease

 

[trade vet 702]

3 minutes ago, Blenheim Car Sales said:

I think i may have explained it wrong its not what i meant

 

 

Well obviously i dont want to to pay company car tax and of course if the ltd company  applies for the lease then this automatically makes it a company car and i as the employee will pay tax on it as a benefit in kind

I prefer to lease it personally, Nothing to do with the ltd company its my own car on a personal lease, I can then charge my own ltd company 45 pence per mile for all business use and if i do enough miles it will pay for the monthly lease

 

That’s the way to do it.Of course when company car tax was introduced I was doing 50,000 a year and my not cheap chartered accountant never told me to buy my own car and charge our company mileage expenses.I am still annoyed about that as both me and the company would have been thousands better off....Mistakes by accountants,they never own up to them.

[Mark101 536]

5 hours ago, trade vet said:

That’s the way to do it.Of course when company car tax was introduced I was doing 50,000 a year and my not cheap chartered accountant never told me to buy my own car and charge our company mileage expenses.I am still annoyed about that as both me and the company would have been thousands better off....Mistakes by accountants,they never own up to them.

Just to make you feel better.  At least back then there were two mileage tax brackets, lower for high milers as the car was less of a perk and more of a requirement.