Private Limited Company

loonygooner

I would very much appreciate any advice anyone has concerning ways of cutting my Tax payments as I am a Private Limited Co (Individual working as a Consultant).
I am looking at buying a car soon (wife expecting Twins ;D), and wondered whether I can use the account to buy the car through, also would like any other handy hints.

Cheers all and keep smiling 8)

les64

I'm no expert but hubby and I have just set up our own Limited Company. Keep the car as a private car and claim the mileage at the highest untaxable rate (40p per mile for first 10,000 miles, 25p mile thereafter). You get hammered for personal tax if the company buys the car and you then personally use it. However if you get a company van, which is classed as a commercial vehicle, then you are only taxed on £500 annaully ( this is to change soon). We were going to do this but the van insurance was then at a very high commercial rate and it wasn;t worth it.

Les

les64

also think very carefully on how you pay yourself your wages - I take it you have an accountant who will advise you - but just in case you haven't - earn up to your personal tax allowance and then take the rest as dividends.