Insurance for LTD company car for 1 person

[d8mok]

I’m a director of my own Ltd co.

I’m also the only employee.


Currently I own my car outright but it’s been suggested that I should be leasing something electric via the business.

In terms of insurance , my current car is obviously insured by me , with business usage alongside personal mileage.

The new car would be owned by the leasing company, but paid by the Ltd co , and solely driven by me for 50/50 use.

Who insures the car? The business or myself ?

I’d prefer to insure it myself to use my NCB but also I can’t seem to find insurers who do a business insurance for just 1 car and 1 driver.

[Simpo Two]

d8mok said:

Currently I own my car outright but it s been suggested that I should be leasing something electric via the business.

It may be a tax-efficient option favoured by accountants but do you actually want to lease something electric?

[d8mok]

Simpo Two said:

It may be a tax-efficient option favoured by accountants but do you actually want to lease something electric?

Yes electric would suit me far better than anything else. All my driving is local , with lots of start / stop.

[trickywoo]

It would be fine to insure it in your name with the company paying. You just need to make sure you declare the lease / ownership relationship correctly.

[d8mok]

Thanks for reply.

So I d guess where usually I declare I m the owner on the V5 I d simply state it s leased via the company.

I assumed I d have to pay out my own pocket this way. But it sounds like I could pay from the company ?

I d be using it for personal use and also business.


Am I also correct in saying that only 50% of the Vat is offset ? But the entire pre vat payment can come out do the corporation tax bill.

I ve also worked out I d pay a small amount in BIk of about £30 a month.

Edited by d8mok on Sunday 22 March 19:26

[oop north]

On repair and maintenance you can recover the full vat. But on contract hire half of the vat. The sum deductible as an expense is net amount plus the 50% of the vat that is not recoverable. Eg lease £400 net & £480 including vat, recover £40 vat and have £440 deduction in p&l account

[Pot Bellied Fool]

d8mok said:

I m a director of my own Ltd co.

I d prefer to insure it myself to use my NCB but also I can t seem to find insurers who do a business insurance for just 1 car and 1 driver.

Pretty sure my broker was mentioning small (1 car) fleets the other week. Drop me a DM and I'll put you in touch. He's a great guy, pulled a property sale out of the fire for me thanks to sorting - in 24hrs - the insurance which the previous broker couldn't do in 3 months!