Funding a car for a business

Funding a car for a business

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Discussion

P700DEE

Original Poster:

1,111 posts

230 months

Tuesday 7th July 2015
quotequote all
I hope to buy a franchise business that will necesitate me purchasing a new/nearly new estate for transporting dogs. I currently own my existing cars outright and just claim the allowed mileage. The existing owner bought her car on the business and writes off the depreciation against tax along with the interest off the loan but she does not pay benefit in kind tax on the car. The vehicle will be liveried and will be an essential tool of the business but will be available for personal use. Can this be done without it being classed as a company car for tax purposes ? Does the method of purchase make a difference ? Cash, PCP, lease ? Sole trader or Ltd company make any difference ? Expected business use would be more than 90%.
Thanks Richard

insurance_jon

4,055 posts

246 months

Wednesday 8th July 2015
quotequote all
if a sole trader then the way she is doing it is right

if limited she should be paying BIK

The other alternative is (if you are ltd) then a van/commercial vehicle attract much less BIK (£500 pa IIRC)