Company 'Van' - Tax Help.
Discussion
Hi. Hopefully someone can help a bit
I have my own limited company, my wife and I are the only shareholders. I provide my services away from the companies registered address and offices. I travel approximately 35k a year in private cars that I claim mileage back from the company at approved rates and the company claims relief on that
At the moment I drive £800 worth of sexual Toyota saloon. However... next year I hope to upgrade somewhat.
I see that some Double Cab trucks are classed as vans by hmrc. So can you please help
Am I better to buy a HiLux for 7k
Lease a Golf Bluemotion
Just buy a car for 7k and carry on claiming milage.
Interested in your opinions on the most tax prudent option, whilst considering both the company and my tax liability. If it makes any difference we are not vat registered because it is a service company and don't trade anything other than my talent.
Or lack of.
I will speak to my account in due course but it's always nice to chew the cud first
If anyone can help crunch some numbers and illustrate I'd be grateful.
I have my own limited company, my wife and I are the only shareholders. I provide my services away from the companies registered address and offices. I travel approximately 35k a year in private cars that I claim mileage back from the company at approved rates and the company claims relief on that
At the moment I drive £800 worth of sexual Toyota saloon. However... next year I hope to upgrade somewhat.
I see that some Double Cab trucks are classed as vans by hmrc. So can you please help
Am I better to buy a HiLux for 7k
Lease a Golf Bluemotion
Just buy a car for 7k and carry on claiming milage.
Interested in your opinions on the most tax prudent option, whilst considering both the company and my tax liability. If it makes any difference we are not vat registered because it is a service company and don't trade anything other than my talent.
Or lack of.
I will speak to my account in due course but it's always nice to chew the cud first
If anyone can help crunch some numbers and illustrate I'd be grateful.
If you are making taxable profits a purchase arrangement could be more efficient than a lease for a commercial vehicle thanks to Asset Investment Allowance.
If you take any company vehicle, you will be taxed twice, first as the employer on employers NIC and again as the employee with BiK and NI.
Personally, I would be tempted to get whatever vehicle you want as an individual and charge the mileage to the business.
If you take any company vehicle, you will be taxed twice, first as the employer on employers NIC and again as the employee with BiK and NI.
Personally, I would be tempted to get whatever vehicle you want as an individual and charge the mileage to the business.
Hilux fuel consumption will eat up any tax saving in no time. So that's out.
A Golf Bluemotion is probably the way to go, or a Volvo V40 D2, but you need to buy it through the company. You can write the purchase cost off against tax in year 1 and the company car tax isn't too bad if you're not paying 40% income tax.
A Golf Bluemotion is probably the way to go, or a Volvo V40 D2, but you need to buy it through the company. You can write the purchase cost off against tax in year 1 and the company car tax isn't too bad if you're not paying 40% income tax.
Vans are great for minimising personal tax liabilities as company vehicles. However, they also cost a ton to run in fuel (especially at your milage) which will be additional cost to the company. Which, since it's your company, means less cash in your pocket at the end!
They're a lot more popular if provided to you by a company that you don't own...
I would do a quick bit of man maths and see what you can get for 7k that won't cost the earth to run (50+ actual mpg) and compare the overall cost of that to the cost of the leased Bluemotion. If you tend to run cars for several years it'll probably work out better to have it yourself and claim mileage.
They're a lot more popular if provided to you by a company that you don't own...
I would do a quick bit of man maths and see what you can get for 7k that won't cost the earth to run (50+ actual mpg) and compare the overall cost of that to the cost of the leased Bluemotion. If you tend to run cars for several years it'll probably work out better to have it yourself and claim mileage.
Looks like a Fiesta van would be the perfect middle man/van. Excellent MPG and a van. The only problem is it only has two seats, so on the rare occasions that I need to pick the kids up on the way home from work I need to go home, grab the car and go out again. I can't shake the feeling that'd annoy the life out of me almost immediately. Shame though.
That's why I thought Pickup - but realistically, the fuel costs are going to put me no better off.
That's why I thought Pickup - but realistically, the fuel costs are going to put me no better off.
radiodanno said:
Looks like a Fiesta van would be the perfect middle man/van. Excellent MPG and a van. The only problem is it only has two seats, so on the rare occasions that I need to pick the kids up on the way home from work I need to go home, grab the car and go out again. I can't shake the feeling that'd annoy the life out of me almost immediately. Shame though.
That's why I thought Pickup - but realistically, the fuel costs are going to put me no better off.
Obviously if you were using the van for personal use then you would be taxed accordingly.That's why I thought Pickup - but realistically, the fuel costs are going to put me no better off.
So obviously if you were asked you wouldn't be using it for personal use
However, some small vans do come with fold away jump seats (corsa combi does) so might be worth looking at.
The fiesta van will be small, and you may find you cannot use any NCB gained on a van against a car in future. Have you considered an older Passat TDI? Van like space, seating when required, good mpg.
http://www.pistonheads.com/classifieds/used-cars/v...
Or the thinking man's Passat! http://www.pistonheads.com/classifieds/used-cars/s...
http://www.pistonheads.com/classifieds/used-cars/v...
Or the thinking man's Passat! http://www.pistonheads.com/classifieds/used-cars/s...
I'm in a similar position, with the significant exception that my Ltd company is VAT registered. The company bought a pickup about a year ago, because I needed to get tools, a compressor and a generator to various sites, as well as a couple of labourers. The contract is now finished, and I use it a company vehicle. Being VAT registered offsets the fuel economy issue somewhat, but nothing compensates for the fact that it's not at all nice to drive. I wouldn't want to spend 35k a year in it.
Irritatingly, the dog and the kids love it, so I'll keep using it for as long as I can bear it.
Irritatingly, the dog and the kids love it, so I'll keep using it for as long as I can bear it.
Perhaps I'm missing something...
I cannot see how you are better off in a van (I'm assuming you don't need a van as such)
A decent car running on LPG will do 60+mpg with your mileage it would pay for conversion within 6mths to a year.
Then simply claim mileage which IME when running a sensible older car you can make a "profit" on (obviously not a profit as such, as you are paying it)
I cannot see how you are better off in a van (I'm assuming you don't need a van as such)
A decent car running on LPG will do 60+mpg with your mileage it would pay for conversion within 6mths to a year.
Then simply claim mileage which IME when running a sensible older car you can make a "profit" on (obviously not a profit as such, as you are paying it)
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