Contractors car leasing

[eek]

Where did I say that?

Tricky to argue with people who can't read quote the right post...

FTFY HTH

[financial analyst]

OP, the main thing seems to be if you want to drive a cheap new car with low emissions, buy (or lease, contract hire, etc) through the company and cover the costs of motoring from the company bank account. You'll pay BiK tax personally.

If you prefer to drive something fun, (more expensive, faster, higher emissions, etc) buy (or lease, PCP, etc) personally (new or second-hand) and charge 45p per mile for up to 10,000 miles per year to the company, giving you £4500 tax-free to run it.

[Contreras]

Wow. No, that doesn't help at all. In fact it's the biggest load of gobbledegook I have read for a long time. All that talk about leasing, personal loan, business expense, BIK, accumulated interest etc makes no sense at all.

Yep, sad isn't it.

Dickvand, all you need to do is draw the money from the company in the normal way as salary/dividends and buy yourself a car with it then claim 45/25p per mile for expenses. Simples.

Seconded.

[northernladuk]

Seconded.

1.5 millioned seems that is what everyone does.

[kingcook]

Why not just keep things easy and sell the car to your company for whatever amount you have in the company bank account? Then buy it back from the company for £1 so you can claim the 45p per mile?

[kevpuk]

Why not just keep things easy and sell the car to your company for whatever amount you have in the company bank account? Then buy it back from the company for £1 so you can claim the 45p per mile?

/Goes off to to just this

[Clare@InTouch]

I agree with Maslins, I think the whole lease bit is a red herring and it's simply a DLA/Dividend transfer.

If you're looking at options though, consider a company van. They have a fixed lower BIK charge, and even paying for private fuel doesn't increase the BIK too much. Of course you have to drive a van, which doesn't appeal to everyone, but the definition can include a few quite common vehicles that you may not expect (they need a payload over 1 tonne, but that includes certain big flatbed trucks).

Or an electric/very low emission car. If it's brand new you can sometimes get 100% capital allowance in the first year, and a low BIK. There may be a sting in the tail if you sell it quite quickly because the capital allowance effectively gets clawed back, but worth considering if you're thinking of keeping it a while.

Useful website for company car BIK implications here: Auto Express Company Car Tax Calculator

[bobspud]

I agree with Maslins, I think the whole lease bit is a red herring and it's simply a DLA/Dividend transfer.

If you're looking at options though, consider a company van. They have a fixed lower BIK charge, and even paying for private fuel doesn't increase the BIK too much. Of course you have to drive a van, which doesn't appeal to everyone, but the definition can include a few quite common vehicles that you may not expect (they need a payload over 1 tonne, but that includes certain big flatbed trucks).

Or an electric/very low emission car. If it's brand new you can sometimes get 100% capital allowance in the first year, and a low BIK. There may be a sting in the tail if you sell it quite quickly because the capital allowance effectively gets clawed back, but worth considering if you're thinking of keeping it a while.

Useful website for company car BIK implications here: Auto Express Company Car Tax Calculator

Wasn't there a loophole a while back that said that cars decorated with livery also fell into the Van taxation brackets?

[northernladuk]

Wasn't there a loophole a while back that said that cars decorated with livery also fell into the Van taxation brackets?

That sounds more like a f**k up by someone than a loop hole.

I do however remember taking the back seats out of my ride and blanking out the side windows as a teenager which moved it from a passenger vehicle in to a van category (can't remember the exact category it went in to) which greatly reduced the insurance for a couple of years.

Insurance is far to tight to get away with anything like that nowadays.

[bobspud]

That sounds more like a f**k up by someone than a loop hole.

I do however remember taking the back seats out of my ride and blanking out the side windows as a teenager which moved it from a passenger vehicle in to a van category (can't remember the exact category it went in to) which greatly reduced the insurance for a couple of years.

Insurance is far to tight to get away with anything like that nowadays.

I can still remember reading the tax notice and thinking this can't be right. Looks like it got sorted