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Buying a car for Ltd - what tax?

Discussion in 'General Discussion' started by Apex, 30 Nov 2021.

  1. Apex

    Capodecina

    Joined: 12 Feb 2006

    Posts: 13,751

    Location: Surrey

    Will ask my accountant but figures I'd get a quicker reply on here.

    Previously we've had a car bought for the Ltd, which is usable by all our staff that are eligible to drive under our insurance. This was a cheap £2k vehicle, and gets used randomly throughout the year. Some times its with someone for a a week, sometimes another person a month etc.

    That car has been written off, and now looking to replace, however as vehicles are so expensive now, £2k doesn't go very far and to get something half decent it's more like £4k needed.

    I'm considering spending more than normal and getting a really decent vehicle at £9k and buying it out right, still for the Ltd company.

    Now my concern is will this change anything tax wise.

    Will pay it fully with no loan, no finance etc. Will be usable still by all staff, though I will likely be the main user, using it for quotes and site visits, but it will still contain tools, equipment, and based used I'd say 40 percent by staff, 60 me.

    Will benefit in kind apply here? It never has before. Will the price of the vehicle make any difference?
     
  2. ChrispyKarma

    Gangster

    Joined: 12 Nov 2020

    Posts: 128

    Talk to your accountant. Generally it is business use so you can write nearly all costs and use as business costs.
    My mate used to use all the receipts for his dog - which lived at his mums - to be a business working dog and wrote off via VAT. The HMRC is never going to send a man round to see if the dog really stays there unless you claim insane money off the pooch.
    Surely your accountant knows how to cheat.
     
  3. dLockers

    Sgarrista

    Joined: 21 Jan 2010

    Posts: 8,933

    Yay tax fraud :rolleyes:
     
  4. VincentHanna

    Capodecina

    Joined: 30 Jul 2013

    Posts: 24,315

    Your mate sounds like a ****.

    Not the OP.
     
  5. Semple

    Sgarrista

    Joined: 5 Mar 2010

    Posts: 9,433

    Seeing a lot of replies like these the last few days.
     
  6. 200sols

    Sgarrista

    Joined: 14 Jan 2018

    Posts: 9,737

    Location: Hampshire

    Working dog food is already VAT free (and anyone can buy it!). How many other receipts does a dog have?
     
  7. Maccapacca

    Don

    Joined: 13 Apr 2010

    Posts: 18,103

    Location: Sunny Sussex

    A new vehicle if you're VAT registered you'll be able to claim the VAT back on
    If it's a 'pool' car it really should stay overnight at the business premises or someone will need to pick up the BIK
    A van however the BIK is so small you may as well just declare it and pay it

    For £9k I'd lease something electric, take benefit of the tax incentives and not worry about skirting round the rules and suck up the BIK