Car insurance when leasing a car through the company

[Eirikur]

Looking at leasing a car through my limited company (not planning to use it private, so hopefully no personal tax implications)
Would the car insurance have to be taken out in the name of the company or the driver (me)
I have 10+ years no claim build up, company has 0 years

[northernladuk]

Parking it on your drive makes it BIK. It's available for personal use.

[Lance]

Looking at leasing a car through my limited company (not planning to use it private, so hopefully no personal tax implications)
Would the car insurance have to be taken out in the name of the company or the driver (me)
I have 10+ years no claim build up, company has 0 years

if you buy the insurance personally how does that equate to no private use?

You could only use your NCD if it's the only car you drive so that's not much use as if it's the only car then you're screwed on the no private use.

Where are you going to keep it? If it's at home then you're also screwed on no private use. And if your office is home then the same. Even with a true commercial vehicle, to get away with no private use you have to keep it at different premises.

[northernladuk]

Just one of the threads on this topic that came up on a search..

http://forums.contractoruk.com/showthread.php?t=112149

[northernladyuk]

Parking it on your drive makes it BIK. It's available for personal use.

Or get a van.

Company van tax: understanding the 2017 rules | Auto Express

[Eirikur]

Where are you going to keep it? If it's at home then you're also screwed on no private use. And if your office is home then the same. Even with a true commercial vehicle, to get away with no private use you have to keep it at different premises.

Hmm if that is correct it just threw the business case out, of course I will check with my accountant, but private lease is back on the list of options again

[Lance]

Hmm if that is correct it just threw the business case out, of course I will check with my accountant, but private lease is back on the list of options again

the only case you'll find is for a commercial vehicle as the BIK is capped. Or an eco car.
If you fancy a HiLux, a Nissan Leaf or a Tesla there's tax savings to be made (but the eco advantage is slipping away year by year and there's a budget in 2 months).

[northernladuk]

Hmm if that is correct it just threw the business case out, of course I will check with my accountant, but private lease is back on the list of options again

I'm sure everytime some asks this the answer is always unless it's a super low emissions car it's not worth it. If there was any clever work around we'd all be doing it. The fact that none of us are speaks volumes.

On the hilux cab thing. I thought HMRC would have an issue as a one man band contractor does not need a van so wouldn't pass any kind of inspection? Could be wrong on that.

[northernladyuk]

I'm sure everytime some asks this the answer is always unless it's a super low emissions car it's not worth it. If there was any clever work around we'd all be doing it. The fact that none of us are speaks volumes.

On the hilux cab thing. I thought HMRC would have an issue as a one man band contractor does not need a van so wouldn't pass any kind of inspection? Could be wrong on that.

Annoyingly this article doesn't address the tax position for company directors. The reclaimable VAT is interesting as well.

Double-cab pick-up truck tax benefits explained | Auto Express

[Eirikur]

I'm sure everytime some asks this the answer is always unless it's a super low emissions car it's not worth it. If there was any clever work around we'd all be doing it. The fact that none of us are speaks volumes.

Fact 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.