Originally posted by northernladuk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Car insurance when leasing a car through the company
Collapse
X
-
"You’re just a bad memory who doesn’t know when to go away" JR -
Originally posted by Eirikur View PostFact is I drive 35,000 miles in average for business purposes per year for the last 7 years, I have another car for family purposes, so I can easily use it for business purposes only. But if there is a stupid rule you can't park it on your own drive way even if your office is your home address or they tax the tulip out of you, I suppose I can forget about driving a company car. An electric car wouldn't get me to my clients and back in one day without recharging, hybrid might be an option, have never really looked into that.
Buy a £5k Mondeo and have all that lovely tax free mileage allowance.
10k @ 45p = £4,500
25k @ 25p = £6,250
= Total of £10,750 per year.See You Next TuesdayComment
-
Originally posted by Eirikur View PostFact is I drive 35,000 miles in average for business purposes per year for the last 7 years, I have another car for family purposes, so I can easily use it for business purposes only. But if there is a stupid rule you can't park it on your own drive way even if your office is your home address or they tax the tulip out of you, I suppose I can forget about driving a company car. An electric car wouldn't get me to my clients and back in one day without recharging, hybrid might be an option, have never really looked into that.Originally posted by Lance View Post35,000 miles......
Buy a £5k Mondeo and have all that lovely tax free mileage allowance.
10k @ 45p = £4,500
25k @ 25p = £6,250
= Total of £10,750 per year.
Although mileage allowance may equate to just shy of 11 grand, you would be paying more than that for diesel fuel and even more for petrol. Plus of course, a 5k modeo could end up with other big maintenance and service bills.
A hybrid isnt worth considering since most only do about 20 - 25 miles on battery while in reality, travelling long distances means the battery pack would hardly be used.
Some electric vehicles do comewith a range extender engine to charge the batteries but even so, arent going to be a serious contender for someone doing 35k miles a year.Comment
-
Originally posted by Lance View Post35,000 miles......
Buy a £5k Mondeo and have all that lovely tax free mileage allowance.
10k @ 45p = £4,500
25k @ 25p = £6,250
= Total of £10,750 per year.Comment
-
Originally posted by washed up contractor View PostA hybrid isnt worth considering since most only do about 20 - 25 miles on battery while in reality, travelling long distances means the battery pack would hardly be used..'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by washed up contractor View PostDriving 35k miles a year means a diesel is the only viable option although a mondeo at 5 grand is unlikely to meet diesel charging regimes in London when introduced and a few other cities considering them.
Although mileage allowance may equate to just shy of 11 grand, you would be paying more than that for diesel fuel and even more for petrol. Plus of course, a 5k modeo could end up with other big maintenance and service bills.
A hybrid isnt worth considering since most only do about 20 - 25 miles on battery while in reality, travelling long distances means the battery pack would hardly be used.
Some electric vehicles do comewith a range extender engine to charge the batteries but even so, arent going to be a serious contender for someone doing 35k miles a year.See You Next TuesdayComment
-
Originally posted by northernladuk View PostBut that's not what a hybrid is designed to do?
Originally posted by Lance View PostSo your suggestion is?
Of course you could buy a petrol car but there would then be a significant hike in fuel costs.Last edited by washed up contractor; 21 September 2017, 12:26. Reason: Clarify for dullards what a hybrid is designed for.Comment
-
Interesting comments here. The car I use for business has gone in the garage and I've been quoted £3000 to fix it :-( . So I'm thinking about options for a replacement vehicle for business use in case I have to scrap this car.
My options are either
1) Business Car Lease by Ltd Company
2) Private Purchase using personal loan (to get a more reliable vehicle for business travel)
I've been told by my accountant today that I can claim back 100% VAT on a company car lease. The car would be kept in my own driveway.
He said that as long as I kept a log of mileage with receipts showing that the car is only being used for business use (to client site and back) that 100% of VAT can be claimed.
I'm slightly concerned however reading comments on various forums stating that BIK would apply just by parking the car in my own driveway...
I already own 1 car ( An older personal vehicle - paid off ) - But not suitable for long business commutes.
So I will have 2 cars registered under my name.
Is my accountant right in saying that 100% VAT can be claimed back or can I only claim 50% VAT. If you can only claim 50% VAT then it's probably easier to just get a personal bank loan and buy the car in cash. Then after 3 years at least you still have an asset you can sell (even if you only get half of what you paid for it)..
If I have 2 cars registered under my name couldn't I argue that I use a separate vehicle for personal use?Comment
-
Originally posted by freelancelife View PostMy options are either
1) Business Car Lease by Ltd Company
2) Private Purchase using personal loan (to get a more reliable vehicle for business travel)
3. Buying second hand with cash
4. Getting a car on a PCP (or other payment scheme)
Given the possible IR35 changes next year, I would be wary of getting the car through your Ltd.…Maybe we ain’t that young anymoreComment
-
Yes valid point regarding the IR35 changes next year. I think I'll stick to a Personal vehicle in this case.
As for PCP finance plans they aren't contractor friendly as I believe the finance approval is normally based on salary alone. When you pay yourself around 11k a year in terms of salary it doesn't look good for finance companies. Barclays declined a 0% APR deal once when I needed to replace a gas boiler for 4k so I had to pay 4k in cash. I'm guessing someone who earns 11k a year was flagged as not being able to re-pay a 4k loan.. Dividends are not taken into account. This is despite having a top credit rating (they don't take into consideration company profits unfortunately)..
Originally posted by WTFH View PostYou have more options than that. Why are you ruling out:
3. Buying second hand with cash
4. Getting a car on a PCP (or other payment scheme)
Given the possible IR35 changes next year, I would be wary of getting the car through your Ltd.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment