Buying a car

[Pacman]

Evening all

As the search facility won't let me search on "car" I thought I'd post...

What is the forum's view of my Ltd buying a new car instead of me personally? Aside from the CO2 and BIK issues, would I be financially better off going through the Ltd? I could reclaim the VAT back, and I do use it mainly for business use but I dont want to be out of pocket any more than I have to.

I'm meeting my accountant this week to discuss this and other issues but I'm interested in hearing your views on it.

Ta
Paul

[Danbro]

Danbro Accounting Limited

Evening Pacman,

Purchasing a car through a Limited Company will only be potentially beneficial if the car has less than 120g Co2 AND you have low mileage.

Your company couldn't reclaim the VAT on a car purchase, only if you leased a car.

The new rules show that the BIK charge is only 10% on petrol cars less than 120g Co2 and you can claim 100% FYA on the car.

Let your accountant crunch some figures for you.

Thanks

Neil

[THEPUMA]

Purchasing a car through a Limited Company will only be potentially beneficial if the car has less than 120g Co2 AND you have low mileage.

This is a common misconception. Most brand new lower end cars and plenty of mid-range cars are better off owned by the company if you actually crunch the numbers.

[Ruprect]

Any chance of any crunching numbers examples? Thx

[moorfield]

I posted a similar question a while ago, my angle on this was whether by selling my motor into the ltdco it would be a useful way of extracting a lump sum from the company as an alternative to income shifting. Now that's on hold I haven't bothered but may review again next year.

http://forums.contractoruk.com/accou...pany-cars.html

I had heard that all fines tickets etc. are addressed to the ltdco and one can avoid licence points. Fines paid by the ltdco but don't know if they are deductible though! That's probably all rubbish anyway.

[dude69]

Evening Pacman,

Purchasing a car through a Limited Company will only be potentially beneficial if the car has less than 120g Co2 AND you have low mileage.

Your company couldn't reclaim the VAT on a car purchase, only if you leased a car.

The new rules show that the BIK charge is only 10% on petrol cars less than 120g Co2 and you can claim 100% FYA on the car.

Let your accountant crunch some figures for you.

Thanks

Neil

The 100% FYA has changed to 110g now. There are very few qualifying cars.

[Platypus]

I had heard that all fines tickets etc. are addressed to the ltdco

They are addressed to the registered keeper of the vehicle, i.e. the company

and one can avoid licence points

Not true.

Fines paid by the ltdco but don't know if they are deductible though!

Usually, the company passes the details of the ticket to the employee and the employee pays up personally.

I suppose the company could pay but I would have thought this would be treated as a BIK (but I'm not an accountant).