Second company car?
Second company car?
Author
Discussion

andy43

Original Poster:

13,195 posts

283 months

Tuesday 24th December 2019
quotequote all
Not sure if this should be here or in Business but here goes :
My wife has a ltd company and has a leased company electric car as sole director/employee, with 2.5 years to run on the contract.
Her ltd co is fully VAT registered due to turnover.
I have a ltd company, but am not and am unlikely to be VAT registered.
Can my wife lease a second car via her company? Not a pool car, not a van or pickup, just a cheapish ICE/hybrid estate car to allow longer range journeys, with both of us insured as per the existing EV. The VAT if I were to lease via my co would make quite a difference to monthly payments.
What would HMRC make of this and what effects would it have on BIK etc?
Has anybody done this with two cars?
TIA smile

ntiz

2,677 posts

165 months

Tuesday 24th December 2019
quotequote all
You can have as many company cars as you like. Both my Range Rover and Tesla are my company cars. My wife isn’t an employee and drives the Tesla as her car was adviced by my accountant this was the cheapest way to own them.

BIK just applies as they would if you owned only one of them just added together.

anonymous-user

83 months

Tuesday 24th December 2019
quotequote all
Remember that not all the vat can be claimed back

So the trade off is that element of the vat versus her bik compared to yours

andy43

Original Poster:

13,195 posts

283 months

Tuesday 24th December 2019
quotequote all
That’s really helpful, thank you! Merry Xmas!
Disappears off to leaseloco.....