Selling personal car to limited company - what "price" to sell at?

[Nixon Williams]

Bear in mind that if you buy the car any VAT you could have possibly reclaimed (not that you can on new cars, but there are exceptions) wouldn't be allowed if you bought then sold to your company.

There are very few circumstances in which VAT can be reclaimed on a car, and it would be unusual for VAT to be charged on a used car.

As usual there are exceptions, but for most contractors, I cannot think of a realistic example of when VAT could be reclaimed.

Our general view is also to generally avoid having a company car.

Alan

[BolshieBastard]

Company cars for contractors don't work because you have a cost implication to your do plus, you have bike / tax issue to you personally, ie you pay twice.

[Jessica@WhiteFieldTax]

Our general view is also to generally avoid having a company car.

Alan

Likewise my view as well - when the maths is done its invariably a tax cost, and the paperwork/ reporting is a nuisance.

[Wanderer]

Every accountant has said that company cars are more expensive by virtue of the BIKs they attract.

Actually, if you but a really low emissions car then you could actually pay less tax than if you drew the money out of the company and paid for it personally. I don't think most of the accountants here can be bothered with all the extra admin so from their point of view it's not worth it, of course (more work for them for the same fee).

I can't see how someone could buy a car on personal credit and then sell it to their company while they still owe money on it though.

And you end up with a Pious. Are you sure you're doing the right thing...

I can't disagree with you on that one though!!! Hate those stupid cars, worse than Nissan Mirca's with drivers so stupid they need parking sensors.