Company or personal car?

Company or personal car?

Author
Discussion

JapanRed

Original Poster:

1,559 posts

110 months

Tuesday 2nd February 2016
quotequote all
Hi all,

I am looking to buy a new (to me) car this year. I'll probably go for a used 420d or similar as a comfortable motorway cruiser (I have a 911 C4S as a weekend car). Purchase price approx £25k.

Would it make sense to buy through my company, of which I am a director and 100% share holder, or privately?

I have a full time job earning £40k per year as an employee. Plus I run my own business which made £55k profit last year (profit is before any tax). I live on my normal salary on a day to day business and from April I will only draw £5k in dividends per year from my business.

I will likely keep the car 3-4 years. Should I buy private or through my business?

Thanks.

PurpleMoonlight

22,362 posts

156 months

Tuesday 2nd February 2016
quotequote all
For a business that you own, I am yet to see a financial benefit to providing a company car rather than claiming 45p per mile etc.

shopper150

1,576 posts

193 months

Tuesday 2nd February 2016
quotequote all
PurpleMoonlight said:
For a business that you own, I am yet to see a financial benefit to providing a company car rather than claiming 45p per mile etc.
I agree with PurpleMoonLight.

Kudos

2,672 posts

173 months

Tuesday 2nd February 2016
quotequote all
Business lease, low BIK car such as a Hybrid

I've always avoided company cars but seriously considering this next time

shopper150

1,576 posts

193 months

Tuesday 2nd February 2016
quotequote all
Kudos said:
Business lease, low BIK car such as a Hybrid

I've always avoided company cars but seriously considering this next time
Or Tesla?

Ozzie Osmond

21,189 posts

245 months

Tuesday 2nd February 2016
quotequote all
shopper150 said:
PurpleMoonlight said:
For a business that you own, I am yet to see a financial benefit to providing a company car rather than claiming 45p per mile etc.
I agree with PurpleMoonLight.
Yup, simple as that.

Ozzie Osmond

21,189 posts

245 months

Tuesday 2nd February 2016
quotequote all
Kudos said:
Business lease, low BIK car
Yes, that's very much direction in which the system is slanted.

JapanRed

Original Poster:

1,559 posts

110 months

Tuesday 2nd February 2016
quotequote all
Thanks guys that's very helpful. It's what my accountant suggested but wanted to be sure 👍

audidoody

8,595 posts

255 months

Wednesday 3rd February 2016
quotequote all
If you want to give yourself a company car run the numbers for a lease on a Porsche Cayenne S-Hybrid. Very low benefit in kind tax

audidoody

8,595 posts

255 months

Wednesday 3rd February 2016
quotequote all
If you want to give yourself a company car run the numbers for a lease on a Porsche Cayenne S-Hybrid. Very low benefit in kind tax

Edited by audidoody on Wednesday 3rd February 20:25

Kudos

2,672 posts

173 months

Wednesday 3rd February 2016
quotequote all
audidoody said:
If you want to give yourself a company car run the numbers for a lease on a Porsche Cayenne S-Hybrid. Very low benefit in kind tax
Funnily enough I'm thinking of changing my Cayenne Diesel for a Hybrid and doing just this.

modeller

443 posts

165 months

Wednesday 3rd February 2016
quotequote all
Kudos said:
Funnily enough I'm thinking of changing my Cayenne Diesel for a Hybrid and doing just this.
Volvo T8 or Outlander Phev are the only 4x4s under 50g which is when the benefit really kicks in

JapanRed

Original Poster:

1,559 posts

110 months

Wednesday 3rd February 2016
quotequote all
So the consensus was that a typical diesel or petrol car is cheapest if bought personally, rather than through the company.

Are you last few posters suggesting that if emissions below 50g it could work out cheaper to buy through company than personally?

Does it make a difference if I bought a used car? Or does it need to be new?

theboss

6,878 posts

218 months

Thursday 4th February 2016
quotequote all
Before committing to a hybrid for a few years its worth knowing which way the BIK rates for electric vehicles are heading.

It may be 5% right now but this is rising steadily to 13% in 2018-19 and 16% after that.

Basically don't touch BIK / company leases with a barge pole - buy privately and expense at the approved rates.

JapanRed

Original Poster:

1,559 posts

110 months

Thursday 4th February 2016
quotequote all
theboss said:
Before committing to a hybrid for a few years its worth knowing which way the BIK rates for electric vehicles are heading.

It may be 5% right now but this is rising steadily to 13% in 2018-19 and 16% after that.

Basically don't touch BIK / company leases with a barge pole - buy privately and expense at the approved rates.
Thanks for the info mate. I'll buy privately then.

red_slr

17,122 posts

188 months

Thursday 4th February 2016
quotequote all
As you own another car can you consider a pool car?

JapanRed

Original Poster:

1,559 posts

110 months

Thursday 4th February 2016
quotequote all
red_slr said:
As you own another car can you consider a pool car?
Not fussed on sharing cars plus I work varied hours each week at several different sites.

DonkeyApple

54,923 posts

168 months

Thursday 4th February 2016
quotequote all
Out of interest, I have no idea how the BIK stuff works etc, but I've recently been toying with the idea of buying a Twizzy to use instead of an Oyster card. I just don't seem able to find a time of day when the tune isn't riddled with people sniffing, snorting, eating bogies, dandruff, burgers, crisps or farting, pissing, shorting themselves etc.

I was just thinking I'd buy a used one if I did go this route but would it make more sense for the company to buy it?

Issi

1,782 posts

149 months

Thursday 4th February 2016
quotequote all
JapanRed said:
Thanks guys that's very helpful. It's what my accountant suggested but wanted to be sure ??
So, you value the opinion of strangers on an internet site over your qualified accountant?

CaptainSlow

13,179 posts

211 months

Friday 5th February 2016
quotequote all
DonkeyApple said:
Out of interest, I have no idea how the BIK stuff works etc, but I've recently been toying with the idea of buying a Twizzy to use instead of an Oyster card. I just don't seem able to find a time of day when the tune isn't riddled with people sniffing, snorting, eating bogies, dandruff, burgers, crisps or farting, pissing, shorting themselves etc.

I was just thinking I'd buy a used one if I did go this route but would it make more sense for the company to buy it?
Buy a scooter, better for commuting and no BIK if 100% work use.