Company or personal car?
Discussion
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.
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.
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?
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?
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. 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.
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