Company or personal car?

[JapanRed]

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.

[JapanRed]

Thanks guys that's very helpful. It's what my accountant suggested but wanted to be sure 👍

[JapanRed]

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?

[JapanRed]

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.

[JapanRed]

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.

[JapanRed]

Issi said:

So, you value the opinion of strangers on an internet site over your qualified accountant?

No I don't.

[JapanRed]

CaptainSlow said:

Buy a scooter, better for commuting and no BIK if 100% work use.

I'm not driving from Leeds to Birmingham on a scooter (or any type of 2 wheeled death trap). But thanks for the suggestion