***company Car V's Too Many Options***

zaxthackray

Hello to all,

firsty apologies for any questions which may have been answered elsewhere before and thanks to anyone who redirects me.

Okay i have just started working for a company registered in Germany, a big one but they have no office in the UK.

What this means is that they cannot be checked against credit checks (Trust me couldn't even get a mobile phone)

In short i need a car which they will pay for and were hopefuly going to a deal with VW whom they deal with for cars in Germany. they could not come up with anything. so looks like i wil have to do the groundwork>

1)I want the ease of a company car but don't want to pay the extra tax

2)Company is registered in germany but ultimatley want to claim back VAT

3)I do high mileage (i cover the whole country) so possibly up to 50,000 a year

4) i can self fund and claim back, but don't want to be left in the lurch should anything go wrong

Okay think thats about it - thankyou

DealDrivers_company_representative

I'm assuming you're living and working in UK, not Germany.

If they are a big company and run a lot of cars they may have an existing relationship with a leasing company for their cars which can offer european deals for employees through their leasing co's office in the UK...and get you a car that way....you'll pay co' car tax though.

If not, they will need to either buy a UK car and provide it to you as a company car (in which case you'll pay company car tax in the UK) or they give you a car allowance and you buy your own car. This means you are essentially running a private car which you'll have to insure for personal and business use, out of your allowance.

It is then your choice as to how you fund that purchase...you can either put your allowance towards an HP deal where you pay off the full amount monthly and own the car at the end of the term, or a PCP deal (where your monthly payments are lower and you have the option to hand the car back or buy it for an agreed lump sum, pcp payments do not attract VAT as the VAT on the car is paid by the funder when they pay the dealer for you), or a PCH deal (personal contract hire) - this is really just a long-term hire deal but unlike company contract hire you have to pay VAT on the monthly rental - and it isn't reclaimable unless your status is as a vat registered business yourself.

If your employer is a registered German company then they won't be VAT registered in the UK. Germany has their own VAT scheme and I believe their VAT is 19%...against the UK rate of 17.5%.