Edcase

As some of you know the scoob is going and I'm now thinking about getting a company car.

As I own my own young but growing business, I'm being super careful about how I spend money / commitments etc.

Anyone in this position have any tips about how to get the best 'value' out of a company car, as the company owner?? Which cars, loopholes, etc etc.

Seeing the accountant next week but be good to hear from people in the same situation.

Ed

Butty

iTrader: (2)

Your car choice is down to how much comfort you need, what is practical and reliable for your company and what will be a good "image" to your customers.

A cheap banger to get you going may be appealing to start with but it will fail sooner or later on some of the points above.
Build the cost of the car into your business plan at the start and don't under-estimate its cost as an overhead.

I am a sole trader and went for a Scooby on a lease with maintenance included, several months ago.
Before that I owned a Scooby that I introduced into the company. As its miles ticked up then maintenance costs started to rise proportionally - so I chose to go for a new one and have maintenace as a known cost every month for 3 years.

I claim 90% of my mileage for the business and claim the same proportion of the lease and maintenance (ex VAT) as an expense.
The VAT is also claimable if you are VAT registered.

Moving to a lease has allowed me to predict (touch wood) my major overhead for a year, on a monthly basis and make allowances accordingly.
As mileage is variable according to my work load, then a mileage rate is added to my day rate as an expense to the client.

I haven't come across any loopholes apart from modding costs to the car are claimable running items

I understand that going Limited is a different story for cars , one (but a minor) reason why I haven't switched yet.

Nick

Tiggs

ed case- i ran a ltd co and running a company car was pointless.......i am also a partner in a non ltd comapnay and as i now trade via that mostly i run the car as described above with all expenses claimed as a % of biz use- you cant do that as an employed director if your ltd.

T

Edcase

Nick, thanks for that. I'm limited and vat registered, any idea what difference the Ltd makes?

Was planning on something 2 yrs old from a dealer with a year warranty left, and TDi, like an alfa or a golf.

Ed

Tiggs

if your ltd your an employee of the firm.....and the deal for employees is rubbish- hence why ppl opt out of co car schemes.

T

Nick

Buy the car personally & charge expenses to the company for "business miles".

Butty

iTrader: (2)

Ed, perhaps Tiggs can answer it more accurately, but I think a Ltd stumps up the cost of buying leasing and maintaining the car, then the user also has to pay company car tax.
If, in my case, I became Ltd, then as the company and I are the same entity, the company car tax would seem an extra burden that I wouldn't want.

I would get the accountant to do the proper figures, but I think that in your case, I would buy the car personally (perhaps a low interest loan from the Ltd co?) then claim all mileage (less travel to and from work unless home based) to the max of the IR mileage rates.
The IR rates are meant to be based on true running costs of vehicles but I don't believe them TBO - they appear to be about 10/15 ppm under.

Nick

Nick

Butty, didn't I just say that in one sentence? You should be Prime Minister!

Butty

iTrader: (2)

I took so long writing my speech that I seem to have been overtaken by other posts

Nick

106rallye

If you can cope with it get a mitsubishi L200 or similar crew cab with a flat bed and payload of over a certain ammount (I think its 1000kilos?) The only condition is not to get a hard top for the flat bed as it can reduce the working load to under the limit

Due to loophole only pay a maximum of £500 benifits tax i think (guarenteed till 2007) and I don't think you pay any tax on personal use as far as fuel is concerned. These figures may be a bit wrong! but someone will be able to give you the exact figures.

Good luck!

Andy

Edcase

thanks guys, will see the accountant this week.