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Company Cars - Should the Limited Company buy the car or Should I buy it personally?

Looking at buying a car - price £22,000 (including VAT). I have a VAT registered limited company and I understand that if I buy the car through the company I can claim the c£3,276 VAT back. As an employee of the company my total income is less than £6,000 so pay little income Tax & NIC and I'm aware that if the company provides me with the car then I'll have to pay as a benefit in kind but it will work out at less than £1,000 per annum in tax.

The question I need guidance on is that if I do this, do I have to get the car insured through the company i.e. the company holds the insurance or can I just change my personal car insurance whilst stating that the registered owner is the company. Having got quotes there is a significant rise if the company holds the insurance as opposed to me personally but I don't want to fall foul of any HMRC view of this.

Any help would be much appreciated.

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By Anonymous
19th Mar 2010 12:50

would love to help

What a charlie.roger.alpha.sierra reply

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19th Mar 2010 13:41

What does your accountant advise?

Too many potential variables here to give a snap judgement.

Presumably you have not yet appointed an accountant, please find a local firm who can advise you properly.

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19th Mar 2010 14:08

As Mr Smail says

Find a local firm who can advise you properly.

I would be rich if I had £1 for every time that I have said "If only you had asked me about xyz before doing it instead of telling me that you had done it."

 

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By Anonymous
19th Mar 2010 15:56

worry

the OP is an accountant  so I do not think she can ask her accountant

roger xray

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19th Mar 2010 15:58

In that case

she should consult a specialist.

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By Anonymous
19th Mar 2010 21:16

can't be

I think more likely a company owner, not an accountant, otherwise there would not be a belief that VAT can be reclaimed. The registered owner is not necessarily the actual owner, as far as I know. Many company cars are registered in the name of the user of the vehicle.

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