Cheapest way of owning a company car

Cornucopia

Another vote for 45p/mile expenses claim on your own car.

If it has to be a company vehicle, maybe look at a van, as ISTR the tax position being less severe than with cars.

unholyangel

You could also pay yourself up to 45p per mile from the company - if you claim it as an expense from hmrc it will be tax relief on 45p per mile for the first 10k and 25p a mile thereafter.

You'll need to keep a record of business miles - but then you'd likely need to do that anyway if you go the company car/van route and need to prove the vehicle isn't being used privately.

motorguy

Jonesya wrote: »

Cheapest option is probably an old, cheap car and claim mileage - but I guess you know that if you're running a business.

If you want something a bit nicer, or a bit flash, then consider something with a low BIK tax rate - electric vehicles are going to see a big cut in their BIK rates next year.

Get yourself a nice EV next year, Tesla 3 is now out which has a decent range:

https://www.goultralow.com/company-cars-and-fleet-vehicles/tax-benefits/

Yes, thats the only other way to make it viable - get something electric or similar to reduce / avoid the BIK. A colleague of mine is looking at doing that.

Personally i just claim the 45p a mile. Any time i've spoke to my accountant about it, he tells me that works best.

LandyAndy

motorguy wrote: »

Claim back the miles at 45p a mile.

AdrianC wrote: »

Ask your accountant. He knows the precise details of your tax situation, so can tailor his advice.

My wife and I have our own company.
She drives 12-15,000 miles a year on business in our privately owned cars.
Our accountant's advice was to continue owning the cars ourselves and claim back the 45p/25p from the company.

MEM62

jonnytekno wrote: »

I looked into giving myself a company car, but the tax I would personally pay is so high it would be cheaper for me to just personally lease a car.

jonnytekno wrote: »

I need it for business use and will not use it for personal reasons

If the car is not available for your personal use where is the tax liability?

AdrianC

Don't forget commuting is "personal use".

MEM62

AdrianC wrote: »

Don't forget commuting is "personal use".

Based on his post, I do not believe that the OP commutes.

sheramber

If the car is available at home HMRC consider it available for personal use whether it is used or not.

. It has to be left at the work premises to avoid any personal use.

He would need to convince HMRC that he did not use it for personal use.

However, OP has said he would 'theoretically' not use it for personal use. It has to be factual, not
theoretic.

Then he said he wanted 98% business, so 2% personal use.