Business or personal loan for my ltd company

Business or personal loan for my ltd company

Author
Discussion

DeanR32

Original Poster:

1,840 posts

182 months

Saturday 24th September 2016
quotequote all
Evening all

As title, what would be best way to buy a van? It won't be brand new, and I'll getting paid for it weekly, so it'll be making me money (not sure how much yet, to be negotiated)

Cheers

KevinCamaroSS

11,553 posts

279 months

Sunday 25th September 2016
quotequote all
Company lease.

Super Slo Mo

5,368 posts

197 months

Sunday 25th September 2016
quotequote all
If it's a brand new or nearly new company you will struggle to find someone to lease you a vehicle.
You will also struggle to get finance although your bank may help here.
You need to sit down and cost it out. There are capital allowances you can take advantage of if you buy it through the business but you pay BIK personally, although it's not too bad for a van.
I would suggest you ask your accountant to advise as he will know your circumstances better than us.

anonymous-user

53 months

Sunday 25th September 2016
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A lot ofor lease companies won't allow you to sub lease the van.

May be best to get a personal loan and put the cash in to the company so they can buy it.

You will almost certainly have to give a PG so you aren't really losing out.

DeanR32

Original Poster:

1,840 posts

182 months

Monday 26th September 2016
quotequote all
Thanks for the replies

Just to clarify, I won't be sub leasing the van. The firm I'll be working for will just pay me more money because I have one, and they won't need to hire one in for me. The money I receive will outweigh the money I pay for it monthly, so it seems a no brainer.

My ltd company has been going for around a year now. The van will be strictly for work.

A quick edit to say that I could do with showing as much earnings as possible the next year for mortgage purposes. My limited understanding is to take what the van earns me as a dividend at the end of the year, and therefore showing more earnings. Is it as easy as this?

Edited by DeanR32 on Monday 26th September 14:56

Eric Mc

121,771 posts

264 months

Monday 26th September 2016
quotequote all
Dividends aren't earnings.

DeanR32

Original Poster:

1,840 posts

182 months

Monday 26th September 2016
quotequote all
I heard they still count when a mortgage looks into your application though

Eric Mc

121,771 posts

264 months

Monday 26th September 2016
quotequote all
They usually do - but legally and from a tax point of view they are classified as investment income, not earned income.

That's the reason why you don't pay NI on dividends.