LTD Company CAR (not van) benefits
Discussion
Morning,
I know there is another Thread on this already but It doesn't really answer my question wholly, so.....
I am a contractor an i operate as a LTD company with me as the Director and no employees. All my mileage is classed as business from home to where ever i happen to be contracting and as such i claim the 45/25p back against expenses.
I don't quite make enough to breach the VAT threshold (although i may do next year), but i am registered on the HMRC Flat rate VAT scheme anyway, so i charge at 20% on my invoices and then pay HMRC the reduced rate (12.5% based on the sector that i operate in), and so I can not claim any VAT back anyway as it stands, in this financial year.
So based on the above is there any benefit to me leasing a car (not van) against the company?
I know there is another Thread on this already but It doesn't really answer my question wholly, so.....
I am a contractor an i operate as a LTD company with me as the Director and no employees. All my mileage is classed as business from home to where ever i happen to be contracting and as such i claim the 45/25p back against expenses.
I don't quite make enough to breach the VAT threshold (although i may do next year), but i am registered on the HMRC Flat rate VAT scheme anyway, so i charge at 20% on my invoices and then pay HMRC the reduced rate (12.5% based on the sector that i operate in), and so I can not claim any VAT back anyway as it stands, in this financial year.
So based on the above is there any benefit to me leasing a car (not van) against the company?
As you are on flat rate VAT, you could not reclaim any VAT on the car leasing payments.
Having the car in the name of the company would create a PAYE taxable benefit in kind -plus additional Class 1A Employer's NI.
The level of tax charge arising is completely dependent on the CO2 rating of the car.
If the company pays for the fuel, there is another taxable BIK charge.
Having the car in the name of the company would create a PAYE taxable benefit in kind -plus additional Class 1A Employer's NI.
The level of tax charge arising is completely dependent on the CO2 rating of the car.
If the company pays for the fuel, there is another taxable BIK charge.
I work with another contractor who uses a van and puts it all through the company. I believe the fact it is a commercial vehicle means it attract less benefit in kind tax penalties, and makes it far more financially attractive.
His van is a five seat Merc van and is a really nice bit of kit. He's also got a young child and another on the way and says it's brilliant for carrying all the extra tackle a young child needs.
Maybe worth considering?
His van is a five seat Merc van and is a really nice bit of kit. He's also got a young child and another on the way and says it's brilliant for carrying all the extra tackle a young child needs.
Maybe worth considering?
Had thought along these lines, but ideally don't want anything too big as it will double as the wife's family wagon in theory, but i don't want to be buying anything that inst a 4x4 as i am sick of getting stuck, its cost me 5 days in lost income this year already, which frankly goes a long way towards justifying the cost of a new car.
I have spoken it through with my accountants and they are doing some sums for me, but it inst looking like its going to be worthwhile.
I quite like the idea of a poverty spec Dacia Duster, and they are cheap as chips anyway.
I have spoken it through with my accountants and they are doing some sums for me, but it inst looking like its going to be worthwhile.
I quite like the idea of a poverty spec Dacia Duster, and they are cheap as chips anyway.
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