Best way to purchase car for Ltd company?

kwhybro

Hi all,

I would like to upgrade my car & wondering which is the best way to do it through my Limited Company? Any advice greatly appreciated!

Thanks in advance!

carlx

I wish you luck, i am currently looking and researching the very same thing and it really is just a huge tax related migraine just waiting to happen! for me personally, it makes more financial sense to purchase the car myself and claim back the mileage. Doing this and ensuring i use at least 10k miles a year i can claim back enough money to pay for the car over the course of 3 years and then as it is my personal asset, sell it without having to work out the best way in which to do it!

kwhybro

Thank you! It's so confusing, isn't it? I've had lots of conflicting advice! :mad:

Savvy_Sue

Talk to your accountant: they know what your business accounts look like, what mileage you do, what the implications would be for you.

InsideInsurance

If your company buys or leases it then its a company car and as such you personally will have to pay the BIK on the vehicle.

Most companies will lease it as then the full cost of each payment is an offset but assuming you/ your immediate family are the 100% owners of the company then you're unlikely to be better off -v- simply leasing it privately unless it is the absolutely lowest CO2 outputs which drives the BIK.

How much do you use the car for business -v- private? You get to claim the higher mileage rate with private cars also remember.