Company car and insurance questions

[tooFATtoDRIVE]

Hi,

Situation: I own an estate car was which I want to sell to a limited company (of which I am the owner and one of the directors).

Questions:

• what changes do I need to do on my V5 docs? Is it a normal sale between myself and a ltd company and then completed V5 has to go to the DVLA?
• do the car insurance websites (i.e. moneysupermarket.com and others) work for a company car insurance when the car would be used for 90% of the time for business purposes, and where there would be two additional business use drivers?

[GoneAnon]

You will need to provide the ltd co with an invoice for the purchase of the car, and the ltd co will become the new keeper on the V5.

Talk to your accountant first because there are rules about directors buying assets FROM a business they control so there may be rules about them selling TO their business too. You certainly want to be careful not to overcharge for the vehicle because that could be seen as a device to evade tax.

As far as I know, the insurance comparison websites are for private customers and won't work for business insurance.

[tooFATtoDRIVE]

Thanks for your reply.
When checking prices on moneysupermarket.com, you have the following options:



I would have imagined that these were for the business use, i.e. for company cars owned by businesses. Is this correct? Or am I missing something here?

[itz_baseline]

tooFATtoDRIVE said:

Thanks for your reply.
When checking prices on moneysupermarket.com, you have the following options:



I would have imagined that these were for the business use, i.e. for company cars owned by businesses. Is this correct? Or am I missing something here?

If it was me I think a quick phone call to an insurance company would clear if up. Don't take advise from someone on a forum who may give you inaccurate information that may leave you uninsured. Better to be safe.

[Siscar]

tooFATtoDRIVE said:

I would have imagined that these were for the business use, i.e. for company cars owned by businesses. Is this correct? Or am I missing something here?

No a lot of people who own a car personally need to ensure that it is also insured for business use, they may use their personal car for company traveling and get paid expenses, but they aren't insured to do that without the right policy.