Not sure whether to use money from business acc

adpad

Hi,

I have just put a deposit down for a car. I need to pay £4500 for the rest of it on monday. I have a business account which has my money in as I get paid directly into it. So, should I transfer the money directly from my HSBC business account to my natwest current account in the form of 'salary' or should I use my business card to take the money out? So it will come straight out of my business account. I'm concerned if I put it through as salary, that will significantly effect my tax.

(I'd ask my accountant but it's the weekend - thanks)

jonesMUFCforever

Is the vehicle for business use or personal?

adpad

I use it to travel to work, which is 70 mile all round trip. But it is also for personal use.

Joe_Bloggs

@Adpad.
Traveling to work is personal use. I suggest contacting your accountant to assist in clearing up personal/business taxation matters.
J_B.

System

I have just put a deposit down for a car. I need to pay £4500 for the rest of it on monday

That's some pretty poor planning in committing yourself without the finances in place.

jonesMUFCforever

You need to clarify whether you are working for yourself hence you having a business account or working for someone else as well hence you saying you have a 70 mile round trip to work.


You really need to contact your accountant and as Monday is a bank holiday wait until Tuesday before collecting the vehicle.

pvt

If it is just a cashflow issue and you can put the £4,500 back into the business account before the end of the tax year, then it is just an employer's loan.

If you need advice beyond that then you should really be asking your accountant to advise you the most tax efficient way to do this.