Hi All,
Wanted to raise a general query around company cars and get some insight into how you guys have handled this, aswell as a second opinion, so to speak.
I spoke to my accountant about getting a car via the LTD, as mixed personal/business use. He said that I cannot re-claim any VAT as it's mixed use, however it will be treated as a capital allowance. If this rings true, for hypothetical purposes, what would the tax saving be on say a £20,000 vehicle? He claim's it's 20% i.e. corp tax savings.
Also, given the fact that you dont need to draw the money out and pay tax its more tax efficient?
I've read a range of articles, but still find it all a little confusing!
Thanks,
SirA
Wanted to raise a general query around company cars and get some insight into how you guys have handled this, aswell as a second opinion, so to speak.
I spoke to my accountant about getting a car via the LTD, as mixed personal/business use. He said that I cannot re-claim any VAT as it's mixed use, however it will be treated as a capital allowance. If this rings true, for hypothetical purposes, what would the tax saving be on say a £20,000 vehicle? He claim's it's 20% i.e. corp tax savings.
Also, given the fact that you dont need to draw the money out and pay tax its more tax efficient?
I've read a range of articles, but still find it all a little confusing!
Thanks,
SirA
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