Private Car or Company Car

chewitt2021

Hi, I was wondering if anybody can give me some advice. My husband is about to become a Director as part of a large optical franchise and we have had lots of people trying to give us helpful advice on tax, but as helpful as they have tried to be, they have left us confused as they haven't really told us how to go about things just what we should try and do.
Anyway, we have a car which is Hire Purchase and is 9 months into its 5yr agreement and someone has suggested that we get the company to buy the car, we don't know what is best as we aren't sure if this is viable as it won't be worth what we owe and we don't want an unexpected tax bill next year that will leave us out of pocket.
it will be used for travel to and from work and occasional meetings which we will be able to claim mileage on at the end of each tax year.
This is my first post so apols if Ive gone on for too long!

firstinflight

Are you suggesting a) you sell the car to the company and then use it as a company car, or b) that the company pays off your HP loan, effectively giving you a free car?

if a) you will be taxed annually on a percentage of the list price, based on the car's CO2 emissions

if b) the payment will be treated as employment income and taxed alongside your salary

chewitt2021

thanks, I would think we would go for the first option and sell to the company