PCP for limited company

Cobra147

Can anyone help please ?
I am a self employed director of a Telecoms company and would like to purchase/lease a new vehicle (Tesla) which is fully electric. I want to buy the vehicle in the most tax efficient way. Please can anyone advise what would be the best option. In particular, if I choose to get a vehicle using a PCP can I treat the entire monthly payment as an expense to reduce profit and hence tax?

neilmcl

If you have a ltd company then simply lease it. Are you VAT registered?

There is really no advantage to a PCP in your circumstance.

Car_54

If you are essentially a one-person company, you need to consider the impact on your personal tax position (benefit in kind) as well as the company's. I'd seek an accountant's advice.

footyguy

Cobra147 wrote: »

Can anyone help please ?
I am a self employed director of a Telecoms company and would like to purchase/lease a new vehicle (Tesla) which is fully electric. I want to buy the vehicle in the most tax efficient way. Please can anyone advise what would be the best option. In particular, if I choose to get a vehicle using a PCP can I treat the entire monthly payment as an expense to reduce profit and hence tax?

Is the vehicle going to be used wholly & exclusively for business purposes?
i.e. no personal use (the definition of which which includes commuting)

Will the monthly payment include any repayment of capital (save for accepted depreciation)?

I agree, an accountant is probably required
It may be better to have the car in the name of the business (assuming it is only for business) with you acting as a personal guarantor if necessary for the loan.

neilmcl

If you really want to finance it personally and not through the company you could look at putting your tax-free dividend allowance towards it.

Sounds like you should follow Car 54's advice and speak to your accountant, the whole financing a company car can be a bit of a minefield.

Mercdriver

I'm essentially a one person company, and my accountant said to leave well alone of putting a car in the company name that I was going to use for personal use too...

motorguy

Mercdriver wrote: »

I'm essentially a one person company, and my accountant said to leave well alone of putting a car in the company name that I was going to use for personal use too...

I thought the general recommendation for people in our position was to buy it yourself and claim the miles?

Mercdriver

motorguy wrote: »

I thought the general recommendation for people in our position was to buy it yourself and claim the miles?

Indeed. The other route is to put in all fuel receipts and get a proportion of the fuel set aside from tax. Saves keeping a log.

Quentin

Claim the mileage.

Doesn't matter that it's fully electric!

motorguy

Mercdriver wrote: »

Indeed. The other route is to put in all fuel receipts and get a proportion of the fuel set aside from tax. Saves keeping a log.

I normally do it via a spreadsheet just logging the date, the miles, the from and the to, and any comment then submit an expense claim form against my business at month end.

Works for me as my travel is predominantly to airports or to a single client site, but may not work for everyone.

footyguy

Mercdriver wrote: »

Indeed. The other route is to put in all fuel receipts and get a proportion of the fuel set aside from tax. Saves keeping a log.

If you don't keep a log of the business miles travelled (as opposed to those travelled on personal business) how can you proportion the fuel used?

And what about other runnings costs?