Company car ownership - logistical question

[Keanu2020]

I found company insurance to be cheaper than personal. I brought 1 year old Plug In Hybrid (regular runs up M1 and to Brimingham for work). Biggest surprise to me wasn't couldn't claim the whole cost of car as business expenses. Seems to be different rules on second hand cars and you can only claim 18% of cost per year or something like that (accountant advice who I trust). Can claim insurance, service, etc.

[northernladuk]

In the current climate of majority inside gigs you might want to investigate your exit options as well just in case there is a timeline in which it's not financially viable if you end up swapping inside and closing the ltd

[Lance]

Yeah, I found similar after posting, but as it's over £6k and the guy was so sure I figured I'd check.

you now have bargaining power. Tell him you want £6k off. See where that takes you.

[b0redom]

if you google "VAT company car" the first link has your answer.
https://www.gov.uk/guidance/vat-on-m...s-notice-70064

Section 6 is https://www.gov.uk/guidance/vat-on-m...s-to-employees

And yes VAT needs to be accounted for if any personal use.


The question is why you would doubt your accountant based on the word of a 2nd hand car salesman?

Yeah, I found similar after posting, but as it's over £6k and the guy was so sure I figured I'd check.

[Lance]

...and another question.

My accountant seems to be suggesting that I can't claim ANY VAT back from the purchase of the car, and that if it's not 100% for company use only you can't even claim VAT back on cars.

The dealer (although I appreciate he's a used car salesman) seems to believe that as it's always been VAT qualifying I can claim all the VAT back. It was originally owned by an electronics company apparently (who were VAT registered), he's the current owner (and is VAT registered). I'm obviously VAT registered.

Who's right? Bonus points if you can point me at the rules.

if you google "VAT company car" the first link has your answer.
https://www.gov.uk/guidance/vat-on-m...s-notice-70064

Section 6 is https://www.gov.uk/guidance/vat-on-m...s-to-employees

And yes VAT needs to be accounted for if any personal use.


The question is why you would doubt your accountant based on the word of a 2nd hand car salesman?

[b0redom]

...and another question.

My accountant seems to be suggesting that I can't claim ANY VAT back from the purchase of the car, and that if it's not 100% for company use only you can't even claim VAT back on cars.

The dealer (although I appreciate he's a used car salesman) seems to believe that as it's always been VAT qualifying I can claim all the VAT back. It was originally owned by an electronics company apparently (who were VAT registered), he's the current owner (and is VAT registered). I'm obviously VAT registered.

Who's right? Bonus points if you can point me at the rules.

[b0redom]

V5 has nothing to do with the owner. As has been identified.

Insurance would have to be business insurance if the company is to pay it directly. It is fine to insure it personally but check with your accountant as to whether you can claim that back (I don't think you can but may be wrong).

BIK is 2% of the new value of the vehicle. This will almost certainly change in April next year, and it ain't going to go down. Just be aware. I doubt it will go as high as the top rate gas-guzzler, but I also doubt it will be a just another 1%. If it went to 10% would you still want the car?

Well I need a new car - the turbo on my old Galaxy exploded and it was uneconomical to repair, so yes I'd still want the car. I guess if BIK was going to be super high, I could take the car to a dealer, get it valued, and sell it to myself personally for that amount, after another year of depreciation.

[Lance]

V5 has nothing to do with the owner. As has been identified.

Insurance would have to be business insurance if the company is to pay it directly. It is fine to insure it personally but check with your accountant as to whether you can claim that back (I don't think you can but may be wrong).

BIK is 2% of the new value of the vehicle. This will almost certainly change in April next year, and it ain't going to go down. Just be aware. I doubt it will go as high as the top rate gas-guzzler, but I also doubt it will be a just another 1%. If it went to 10% would you still want the car?

[b0redom]

To answer the question:
Registered keeper is you (although it may be a good idea to have the address on the V5 as:
Your Name
Your Company Name
Your Company Address)

For insurance, the registered keeper is you, and the car is based at your home address, BUT the owner is your company, at your company address.

Urgh. That sounds like a specialist insurer job. I'll have a google around and see what I can find. Thanks.

[b0redom]

Is your company buying it outright, or leasing it?

…and can I check it’s not a Fisker, which you can pick up with delivery miles for under £30k, because the company is going under.
https://www.autotrader.co.uk/car-sea...0&sort=mileage

I would be buying outright. It's a model X not a Fisker. I'd never heard of Fisker before. The dealer also had one of those and I took a quick look, but the back is too small. I need 3 full sized seats. Interesting that they're so cheap. I wonder how long parts etc will be available. The Extreme seems like it could be good value for money assuming nothing falls off for a few years.

[WTFH]

To answer the question:
Registered keeper is you (although it may be a good idea to have the address on the V5 as:
Your Name
Your Company Name
Your Company Address)

For insurance, the registered keeper is you, and the car is based at your home address, BUT the owner is your company, at your company address.

[hobnob]

Do I have to do anything special with insurance? I've got what appears to be a reasonably quote for me personally with SDP+business. Is this going to be OK, or do I need to have something special?

I don't think you'd be able to insure it personally, because you won't own the vehicle. I.e. the company will need to take out the insurance policy, and any No Claims Bonus will be attached to the company rather than to you.

[WTFH]

Is your company buying it outright, or leasing it?

…and can I check it’s not a Fisker, which you can pick up with delivery miles for under £30k, because the company is going under.
https://www.autotrader.co.uk/car-sea...0&sort=mileage

[b0redom]

I've found an electric car I like. It's 2nd hand but VAT qualifying which brings it to a very appealing price.

If I want to buy it through my Ltd, I presume the V5 needs to be in the company name rather than mine?
Do I have to do anything special with insurance? I've got what appears to be a reasonably quote for me personally with SDP+business. Is this going to be OK, or do I need to have something special?

I'd rather not let this descend into, a new vs bangernomics / electric vs ICE thread.