Car - Buy or Lease?
Discussion
My company owns vans. Wife is Co Sec and has private car. It's time that she has a new / new-ish car. Given that she has a separate job and is not actively working for 'the company', can we still buy / lease a car for her through the business? What are the pros and cons?
I was born yesterday.
I was born yesterday.
Far, far too long winded and complicated to go into too much detail.
From a tax point of view, the misses will now have a company car and the company will have to return the value of the Benefit-in-Kind arising on the annual form P11d (and a Foem P46 (Car))..
She will then become liable to Income Tax under the PAYE system on the tax arising on the benefit.
The company, as employer, will also have an Employer's National Insurance liability to pay (Class 1A).
The value of the benefit is worked out by reference to the manufacturer's offcial list price for the car plus the list price of any accessories fitted and then multiplied by a percentage based on the CO2 emmission level of the car as outlined by the manufacturer.
There is no "legal" reason why she can't have a company car.
From a tax point of view, the misses will now have a company car and the company will have to return the value of the Benefit-in-Kind arising on the annual form P11d (and a Foem P46 (Car))..
She will then become liable to Income Tax under the PAYE system on the tax arising on the benefit.
The company, as employer, will also have an Employer's National Insurance liability to pay (Class 1A).
The value of the benefit is worked out by reference to the manufacturer's offcial list price for the car plus the list price of any accessories fitted and then multiplied by a percentage based on the CO2 emmission level of the car as outlined by the manufacturer.
There is no "legal" reason why she can't have a company car.
Edited by Eric Mc on Monday 23 April 15:07
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