Limited company director - buying a car

jammycodger

Hi all

I'm sole director of a company, currently looking to buy a car - it's £25,000 and has 285 g/km co2 emissions (which is apparently a factor)

Any idea how I would calculate whether or not I should but it as a company car, or personally?

Any help much appreciated!

Savvy_Sue

Talk to your accountant?

Pennywise

If it's your own company, given that price and emissions, the chances are you'd be far better paying for it and owning it personally and just claiming the HMRCs 45p per mile rate for business mileage.

The car and car fuel scale charges are going to be huge, meaning high personal tax charge and company NIC charge on the scale charge benefit in kind figures.

Unless you do a lot of private mileage and very little business mileage, I can't see how the company buying it could ever be better.

But, yes, to check it out properly, talk to your accountant who will know your personal and business tax affairs and be able to do the number crunching.