Company Car - Can MyCo buy a used a car?

[scooby]

Cant say i want to buy a brand new one, and not sure how i feel about a lease car which limits to 10k mileage, so whats the guidance on the company purchasing a used car (couple of years old max) and issuing that as a company vehicle?

Are there are sites with guidance on this etc?

Cheers,
Scooby.

[northernladuk]

Cant say i want to buy a brand new one, and not sure how i feel about a lease car which limits to 10k mileage, so whats the guidance on the company purchasing a used car (couple of years old max) and issuing that as a company vehicle?

Are there are sites with guidance on this etc?

Cheers,
Scooby.

There is this one! This has been discussed in a thread started by yours truely. There isn't a guide but if you speak to your accountant they should give you the break down. Ultimately it only works for you if you buy a car under 110 g CO2 but you can get an A3 and 3 series BMW in that. THe more you spend on the car the greater the saving. The savings on a 4K Aygo for example were just not enough to make it worth it. Let me find the thread

[northernladuk]

Here you go.

http://forums.contractoruk.com/accou...h-company.html

Might want to ask mod to move this to Accounting though

[Waldorf]

My accountant has this on their website - http://www.nixonwilliams.com/images/...any%20Cars.pdf

seems quite comprehensive.

[Wanderer]

That's a good guide.

So unless you are driving a Prius or some other ecomobile then forget doing all the calculations and stuff about C02 emissions and read the conclusion first:

Generally company cars are not tax efficient for owner managed companies i.e. where the recipient of the company car is also the sole shareholder, as the same person effectively ends up paying both the employee and employer taxes.

Normally the only time a company car is tax efficient is if you are an employee of a company you do not hold shares in or if the car is particularly friendly to the environment i.e. low emissions and, as such, Nixon Williams’ advice is normally to avoid company cars.

[Clare@InTouch]

There's a good guide here which shows the BIK value of many cars - Auto Express Company Car Tax

[v8gaz]

Note that the BIK is based on the original purchase price, not the price you paid. Which is why I didn't put my used BMW V12 7 series through the company, as it was 86k new

[northernladuk]

Note that the BIK is based on the original purchase price, not the price you paid. Which is why I didn't put my used BMW V12 7 series through the company, as it was 86k new

Shouldn't you be posting this under your V12gaz sockie then??

[v8gaz]

Nope, currently driving a V8 X5. It's winter. dontcha know.

[northernladuk]

Nope, currently driving a V8 X5. It's winter. dontcha know.

I feel so stupid