I've been fortunate that my Ltd company has been doing well and has saved up enough for a company car (electric of course for no BIKs) . Then I was IR35'd. Had a catch up chat with our Accountant and casually mentioned that the company has sufficient funds for a car on a lease but Accountant said no as HMRC might get the hump as there are no new sales coming into the Ltd. I'd not heard this before or even considered it. Is the Accountant right?
- 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!
Ltd Company wants to lease car but Accountant says No!
Collapse
X
-
-
Originally posted by MrBen View PostI've been fortunate that my Ltd company has been doing well and has saved up enough for a company car (electric of course for no BIKs) . Then I was IR35'd. Had a catch up chat with our Accountant and casually mentioned that the company has sufficient funds for a car on a lease but Accountant said no as HMRC might get the hump as there are no new sales coming into the Ltd. I'd not heard this before or even considered it. Is the Accountant right?
Thing to bear in mind is, taking out a lease for 3 or 4 years but winding your company up in say the next 12 months if you can only get IR35 caught contracts. Better to take a lease as a private individual, even leccie. -
Originally posted by TheDogsNads View Post... Better to take a lease as a private individual, even leccie.
If you buy it through the Ltd and you want to close the Ltd down, you either have to buy the car out of the business lease, or return it (and potentially pay any penalties).
There's a few threads on here about this kind of scenario.…Maybe we ain’t that young anymoreComment
-
has sufficient funds for a car on a lease'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View PostI'd be more worried about this. What does this mean? You only need a couple of K to get a car on lease. If that's all the funds your LTD has then he's absolutely right to warn you off getting it.Comment
-
I’ve come up with a new idea (not really new but new to me).
Since lockdown my car has done f*** all.
In fact I might as well have SORNed it or sold it.
So new plan in formation is to get rid. And simply hire when needed. That’s a fully claimable business expense (no BIK). Any personal travel will be done using the family’s one remaining car, or taxi.
I reckon I’ll need maybe 6-8 weeks max in a year. That’s gonna cost less than leasing a car and without the financial commitment.See You Next TuesdayComment
-
Originally posted by MrBen View PostI've been fortunate that my Ltd company has been doing well and has saved up enough for a company car (electric of course for no BIKs) . Then I was IR35'd. Had a catch up chat with our Accountant and casually mentioned that the company has sufficient funds for a car on a lease but Accountant said no as HMRC might get the hump as there are no new sales coming into the Ltd. I'd not heard this before or even considered it. Is the Accountant right?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