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.