best option ? - buy a car as ltd OR personal

[css_jay99]

Hi,

Now that my car is going to be written off by insurance company, i need to buy another car. the outlay will be about 18k-20k on a 2nd used car (BMW X5).

i can either buy the car with company money and then pay all the usual BIK.... OR take 12K out as DIV and get a lone out for the rest

my question is which will be the best option of the two.

how do I work out the BIK on first option if i am going to be using the car 95% for personal use and would any element bring down my profits B4 tax


cheers

css_jay99

[kirk]

99.99% of the time it's to buy the motor personally; your accountant should be able to advise you but that's what I was advised

[css_jay99]

i think i was comming to the same conclusion as well after working out the benefit tax using calculator on hmrc site

Now i guess it now leaves on option of either pay in full or take a loan out for some of it.

css_jay99

[reginald]

its much easier to dodge fines and points on your license if your car is registered through a ltd co

[css_jay99]

its much easier to dodge fines and points on your license if your car is registered through a ltd co

I am a law abiding citizen

[Crossroads]

i can either buy the car with company money and then pay all the usual BIK.... OR take 12K out as DIV and get a lone out for the rest

Best Option? Take the dividend and don't spend more than 12k on a car! Finance on a depreciating asset - madness!

[css_jay99]

Best Option? Take the dividend and don't spend more than 12k on a car! Finance on a depreciating asset - madness!

i wont be able to get what i want for 12k.

I am sure there is no finance on a capital asset that does not deprecite (apart from a house of course)

how do most people afford brand new (or expensive used) cars ?

[Euro-commuter]

i wont be able to get what i want for 12k.

I am sure there is no finance on a capital asset that does not deprecite (apart from a house of course)

how do most people afford brand new (or expensive used) cars ?

They borrow (which is madness), or they buy what they can afford. Many people can afford an expensive new car.

Don't be fooled by the self-congratulatory contractors' canteen culture into thinking that you're particularly well-off just because you're a contractor. You're still ferkin peasants as far as I can see.

[pickle]

Spend the 12k of company money on an old classic car, and pay BIK based on the cars original list price (which in 1970 was maybe 2 shillings and an apple or some such)

Very tax efficient.