Company asset

System

Lum wrote: »

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.

Only problem with that, is that it will affect my tax credits etc... so i'd be worse off i think

Lum

In that case, you might just be best off doing it as a company car for a year or so, then once it's taken the initial wallop of depreciation, the company could sell it to you?

Not sure if this is legal mind. This is the kind of thing you should be having your accountant work out!

Notmyrealname

And don't forget that whether you buy it yourself or your business buys it, you still need insuring for business use exactly the same as you should have on the car you're currently driving.

System

Yeah my current car is insured for business use.

Can i not loan myself the money from the company and repay it each month at a rate that i would be paying for finance payments for instance (£200 a month say?)

Thanks.

Sgt_Pepper_2

mhartley wrote: »

Yeah my current car is insured for business use.

Can i not loan myself the money from the company and repay it each month at a rate that i would be paying for finance payments for instance (£200 a month say?)

Thanks.

You pay an accountant yet you ask advice on a forum.

Lum

^^^ What he said.

Pretty sure cheap loans are a taxable benefit though.

colino

Going off topic slightly, and as you said you had an accountant, if a £16k car makes your personal finances marginal you should be applying the mantra - if you use it up (most certainly with a company car) you rent/lease it, if it appreciates, you buy it.

System

Well i spoke to my accountant who has told me to work things out they'd need my profit forecasts, salary im expecting to take with dividends etc... the car cost etc... and method of purchase but as the advice falls outside of their services (already paying them for book keeping, accounting and pay roll) they will have to charge £100 + vat

So that's why im back here now.

neilmcl

mhartley wrote: »

Well i spoke to my accountant who has told me to work things out they'd need my profit forecasts, salary im expecting to take with dividends etc... the car cost etc... and method of purchase but as the advice falls outside of their services (already paying them for book keeping, accounting and pay roll) they will have to charge £100 + vat

So that's why im back here now.

I suggest you stump up the £100 and get some proper advice.

Have you considered a director's loan?

mikey72

mhartley wrote: »

Well i spoke to my accountant who has told me to work things out they'd need my profit forecasts, salary im expecting to take with dividends etc... the car cost etc... and method of purchase but as the advice falls outside of their services (already paying them for book keeping, accounting and pay roll) they will have to charge £100 + vat

So that's why im back here now.

I would have thought putting a car on the ltd company's books is the first thing most people do, so I would be wondering about your accountant tbh.