Buying a commercial vehicle through LTD company

greyteam1959

Its not very helpful but..........
I would sack your accountant and take on one that can give you the advice you need in laymans terms.........
Is Bean Counter looking for a job ?????????

Bean_Counter

mervyn11 wrote: »

Is Bean Counter looking for a job ?????????

Thanks, but currently got the auditors in the next room keeping me busy!!!

WHA

peterc2609 wrote: »

van/pickup would be around 6k

My business mileage would be around 12000 a year.

I would still have personal car for weekends and evenings etc,(if the taxman needed proof) But the van/pickup for carrying PCs/Servers etc.

My Ltd company earns around 50k a year (IT consultant), I have my everyday expenses and the accountant makes me wage slips for roughly £400 a month, to avoid personal tax etc.

What else do you need to know?

I just want to know what would be the most profitable way of doing it.

I claim mileage at 40p a mile at the moment.

Given those figures, I think I too would advise to just buy it personally and claim the 40/25p per business mile.

Company buys it, pays £6,000 and then pays running costs, gets tax relief of 20% of costs and capital allowances on purchase, you pay taxable benefit in kind at probably 40% on scale charge and fuel. Compared with

You own it personally, pay £6,000, claim mileage, amounting to £5,300 per year, no personal tax, company gets tax relief of 20% of the mileage. Your personal running costs and depreciation are likely to be less than £5,300 so you personally make a tax free profit.

consumerpower

I can answer the VAT side, long forgotten all the Capital Allowance rules, if you are solely using it for business purposes, and you leave it at the office over night and at the weekend.

Remember if you let any other employees use it outside work hours, inc yourself (I am assuming you are a Ltd co) then it may cause PAYE benefit issues.

Also email back your accountant and ask for a proper response!

dejongj

When you go personal you do need commercial insurance when you carry PC's an Servers around....

I'm wondering though how you can be a consultant when are moving equipment around, also do your customers appreciate having their PC's and Servers in the back of a van or even worse pickup truck? I tend to use air suspension transport for such sensitive equipment...

Anyway what I am getting at, do you really need to do this with your own transport or is it more a 'story' for justification of a company car? Remember that when you get something clean with less than 120gr/km CO2 emissions you can do the full 100% in year one...