Company asset

Legacy_user

Hi all,

Didn't know where to post this so hopefully this is the right spot.

I'm the director of my own ltd company and my accountant said I can buy a car through as an expense putting it as a company asset so the invoice will say my company name though the car will obviously be registered to me.

Will I be able to have personal insurance on it or will I need company style insurance instead?

Who will own the car? Me or the business?

Thanks I advance.

mikey72

mhartley wrote: »

Hi all,

Didn't know where to post this so hopefully this is the right spot.

I'm the director of my own ltd company and my accountant said I can buy a car through as an expense putting it as a company asset so the invoice will say my company name though the car will obviously be registered to me.

Will I be able to have personal insurance on it or will I need company style insurance instead?

Who will own the car? Me or the business?

Thanks I advance.

Why will it be registered to you?

Normally, owner, registered keeper, and policyholder are the business, and you are a named (and main) driver.

The business will always retain ownership of the car.

System

My accountant said it will be registered to me, I just need the company name on the receipt.

mikey72

Make sure the insurance company are happy with whichever way you do the paperwork.
At the end of the day, as you say, you don't own the car, the ltd company does, so the insurer will pay them out if required, as the legal owner, so will need the policy in the ltd companies name, but with you a registered keeper, and not all like that.

colino

It doesn't matter if you are thinking about buying a company car this way or not, if you are using a car for business now it should be insured for business use.
If you (the company) subsequently buy a company car, it is their asset (potential insurable loss) and the company should insure it. Funny words from an accountant. and while I'm not going to open up the V5 proof of ownership nonsense, I'd expect the car to be registered to them too.

s_b

on the v5 you put your name and the company name
as said you insure it via the ltd company

TrickyWicky

mhartley wrote: »

My accountant said it will be registered to me, I just need the company name on the receipt.

If its your company does it even matter? - If you ever sell the company you just write off/sell the car to yourself before/as part of the sale.

I'd question your accountant or yourself - by 'you' he probably meant 'you' as in the business.

Certainly looks and sounds dodgy - a receipt for a car in the company name but owned and registered to a private person - do you honestly think the tax man would swallow that with no questions asked? :rotfl:

System

Ok will speak to them.

My current insurance company said they can put my company name on it.

Or would I need to change to a company insurance policy?

Thanks.

Notmyrealname

mhartley wrote: »

My accountant said it will be registered to me, I just need the company name on the receipt.

If it is used by you it will be a company car attracting company car tax.

Also as an asset of the company when you sell it you'll pay tax on the sale.

You will need business insurance on your car if you use it for business whether you buy it or your business does.

System

Ok spoke to them, and seems i'm going to be better off getting the car in my own name.

Only problem i have is that i'd have to get it on credit and i have a CCJ which i'm currently getting set aside as it shouldn't even be on there.

Will i have major problems getting a £16,000 BMW on finance? My credit score is currently 729/1000 through experian.

Will getting the CCJ removed/set aside etc... help majorly?

I also have some defaults, but they are from 4 years ago and i think the CCJ is doing more harm to be honest.

Thanks,

Andy

Lum

Can the company not pay you a £16,000 bonus and then you buy the car cash?
Sure you'll attract tax at whatever rate you're on but it may well work out cheaper than paying the interest rates on car finance. You could possibly avoid being bumped up to the next tax band if you pay some of the money now and some on the 6th.

With the car in your name, you can pay yourself 45p/mile* tax free for all business trips which, with the correct choice of car, can be a nice little earner

*for the first 10,000 miles, then 25p/mile afterwards.