Creative ways of funding vehicle from Ltd company

[shopper150]

Does anyone have any good ideas of how to fund a vehicle through a ltd company (or self employed) whilst avoiding benefit in kind etc?

I've read of ideas such as putting the purchase against the directors loan account etc.

Any other ideas?

[Vladimir]

I think I've been through every scenario with my accountant but ended up buying privately. Unless you want an Eco warrior machine (although some aren't bad), HMRC will repeatedly rape you until you go bust.
In the old days, Dad just used to buy good staff a decent car and that was it.
Bah!

[shopper150]

Thanks
Don't fancy the 20 percent corp tax, then personal tax and vat on the vehicle!
Crazy level of taxation!

[Lefty]

Any car in particular?

Commercial vehicles are quite tax efficient, double cab pickups, defenders, kombi vans etc.

Look into classics too. If you pay less than £15k for the car and it's over 15 years old you pay the tax based on it's new list price. Lots of nice sports cars from the 60's/70's...!

[Lefty]

You could always take a directors loan to buy the car and sell it the next year and pay off the loan.

[Vladimir]

shopper150 said:

Thanks
Don't fancy the 20 percent corp tax, then personal tax and vat on the vehicle!
Crazy level of taxation!

Or they make you pay £5k a year in BIK tax! I try and make our business income work as hard as possible for us but still haven't found a better way to fund a camper and an interesting car than just claiming mileage.

[qureshia]

Choose a BMW I3 ....zero BIK for first couple years and then only 5% (I think)

[Ari]

I bought my car privately and claim 45p/mile business mileage.

Trying to claim depreciation and running costs and balance how much in business mileage and how much is private - all too much hassle.

[Fats25]

Does the vehicle need to be a car?

Motorbikes are treated differently, and can be easily purchased through a ltd company.

I have heard rumours you can do similar with a smart car, but am not sure how accurate that is.

[GoneBananas]

This must be one of the most thought about question for small businesses. The HMRC have also thought about it... and at present unless you are in the motor trade, this is the cheapest solution.

Ari said:

I bought my car privately and claim 45p/mile business mileage.

[berlintaxi]

GoneBananas said:

This must be one of the most thought about question for small businesses. The HMRC have also thought about it... and at present unless you are in the motor trade, this is the cheapest solution.

Ari said:

I bought my car privately and claim 45p/mile business mileage.

Unless you do over 10,000 miles a year.

[radiodanno]

...at which time you can claim 25p a mile.

I run a 15 year old POS that give me (currently) 36mpg. That's still 16p a mile in fuel. I doubt I'm doing 10p a mile of tyres/brakes etc...

[JimmyConwayNW]

Is it 45p a mile for first 10,000 then anything over 10,000 25p?

[Axionknight]

JimmyConwayNW said:

Is it 45p a mile for first 10,000 then anything over 10,000 25p?

Yes.

[RizzoTheRat]

Fats25 said:

Does the vehicle need to be a car?

Motorbikes are treated differently, and can be easily purchased through a ltd company.

I looked at doing this when I had my own company, bikes count as plant and machinery rather than company cars, so I could have bought the bike for about 2/3 retail price (claim VAT and pre corporation tax) and my tax liability would have been under £100/year.

[crossy67]

We used to claim 50p a mile.

[snapdragon69]

Run the car as a social charity aimed at taking disadvantaged lesbian teenagers for team building weekends or whatever the latest bang-on-trend PC fad is these days.

[dry664]

You used to be able to do the 'company pool car' thing. Is that not an option anymore?

[Pixelpeep]

didn't i read somewhere that there was real benefits to getting a vintage car through the company?

something before xxxx year - which i had more info, maybe someone could do some research?

[RizzoTheRat]

crossy67 said:

We used to claim 50p a mile.

You'll be taxed on it if you do, maximum that HMRC will let you do without taxing you on it is 45p/mile for the first 10k and then 25p/mile after that