Company Car

[IsabellC]

Im about to buy a new car and have heard that I could make a saving if I buy (or lease) through my business, is this correct?

[james]

Originally Posted by IsabellC

Im about to buy a new car and have heard that I could make a saving if I buy (or lease) through my business, is this correct?

It really depends on how much tax you are paying at the moment. Company cars are not my speciality but it will get taxed as a benefit in kind on a calculated value.

Are you currently a 40% taxpayer?

[MarkP]

Is it correct that the more you drive the more you can save?

[IsabellC]

Are you currently a 40% taxpayer?[/quote]

Yes, does that make a big difference?

[harry]

All I know is that my company car puts me at a minus with goverment, I'm a merry old tax code of 18k - which means I pay tax on money I have not even earned yet!

[scorpiox]

o_o
I think it is beneficial to lease through your company, because they have something or other to turn it into a cost, which is what happened for someone i know, which means they don't pay tax on the money I think. It's hazy too mee :P

[Poppy]

Hi

I have also been looking into this - specifcally car leasing.

I think if the car value is under £12000 and the CO2 emmisions are low then all the better.
If you are VAT registered you can claim 100% for full business use and 50% vat on partial business/private use.
You can also claim some relief on corporation tax but you will be taxed personally - for me I would end up paying slightly more tax than what I would save but then again with a brand new car you have no expensive repairs to worry about as it would be under warranty.

Best to speak to your accountant who can best clarify your situation.

Thanks
Joanne