Use limited company to purchase car and lease-back to me?

[fattiereturns]

Hey folks, hope you are well.

I'm looking to purchase or lease a car, but have better things to do with the capital in 2015 to be honest.

I tried a quick search, but couldn't find any topics related for lease-back.

Is it feasible that I purchase a car through my company, and lease it back to myself at market value? Rule of thumb is leasing cost per month is comparable to ~1% of car value.

So I'm considering if I could purchase say, a 15k car under my company, and lease it back to myself for £150 pm or so? Obviously I would assess the depreciation in the car to ensure my company makes a small profit from me. More profit, more corp tax, everyone is happy - or are they?

Thanks for your help!

R

[northernladuk]

What did your accountant say? (after he had stopped laughing)

[John8589]

General rule of thumb is that it is more tax efficient to keep cars with private use out of the company.

What are you trying to achieve by leasing the car from the company to yourself?

[northernladuk]

General rule of thumb is that it is more tax efficient to keep cars with private use out of the company.

What are you trying to achieve by leasing the car from the company to yourself?

A very poorly thought out tax dodge I think....

[TheFaQQer]

So I'm considering if I could purchase say, a 15k car under my company, and lease it back to myself for £150 pm or so?

Yes, you could.

Whether you would incur a benefit in kind charge or not is a different question, however.

[Pondlife]

Rule of thumb is leasing cost per month is comparable to ~1% of car value.

Any example of where this is shown to be the case? A quick look showed the value to be higher So if it looks like a sham from the off it won't fly without being a BIK

https://www.firstvehicleleasing.co.u...-es-4dr/438911
£474.29 per month inc VAT (which yourco charges, no?)

BMW 3 Series 316d Es 4dr Review | What Car?
Price £26,275

[AMH]

have you considered an electric vehicle?
something like the Outlander PHEV?
5% BIK, £0 road tax & if you pay for the fuel out of your own pocket you could claim the advisory fuel rates of 16p per mile from your company (this may change soon with the petrol prices tumbling). HMRC dont distinguish the difference in Hybrid, so as it has a petrol engine, all mileage can be claimed at the petrol rate.

It costs about £1.20-1.50 to charge & you would get about 22-23 miles per charge.

[tractor]

...

have you considered an electric vehicle?
something like the Outlander PHEV?
5% BIK, £0 road tax & if you pay for the fuel out of your own pocket you could claim the advisory fuel rates of 16p per mile from your company (this may change soon with the petrol prices tumbling). HMRC dont distinguish the difference in Hybrid, so as it has a petrol engine, all mileage can be claimed at the petrol rate.

It costs about £1.20-1.50 to charge & you would get about 22-23 miles per charge.

If I were going this route, I would have 5 electric vehicles to cover me for power cuts and stuff

[John8589]

A very poorly thought out tax dodge I think....

A tax avoidance scheme that increases Corporation Tax. I don't think the OP's idea will catch on!

[AMH]

If I were going this route, I would have 5 electric vehicles to cover me for power cuts and stuff

I know someone who has one as a company car. Recharges it at work & still bills them 16p!