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.

Comments
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would love to help ...but

Anonymous |

would love to help

Anonymous |

What does your accountant advise?

Chris Smail |
Chris Smail's picture

As Mr Smail says

Phil Rees |
Phil Rees's picture

worry

Anonymous |

In that case

Phil Rees |
Phil Rees's picture

can't be

Anonymous |