Can I put a new personal EV through my company?

Didn't find your answer?

I've bought a brand new electric car using my personal funds and it's registered in my name.

Is it possible to transfer this into my company and claim 100% FYA on it or did it have to be registered to the company when purchased?

If this isn't possible, are there any other options open to me?

It will be split personal/business use and I'm aware I can't reclaim VAT and that there would be BiK payable.

Many thanks in advance.

Replies (21)

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By Wanderer
14th Dec 2023 07:07

No, it won't be possible and you've lost out.

If only you had an accountant they could have given you advice which would probably have saved you £'000's:-
https://www.accountingweb.co.uk/any-answers/signed-accounts-for-a-mortga...
in which I commented:

Wanderer wrote:

So you've been in business over three years, have a limited company, sufficient turnover to be VAT registered, questioned the advice of Les Howard on a VAT point, have alphabet shares & still don't think it worthwhile employing a professional to properly prepare your accounts, tax returns etc. & give you advice?

& no doubt your current query will soon get all urgent, urgent.

I'd borrow Leywood's barge pole & put a stick on the end to push the request away.

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Replying to Wanderer:
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By FactChecker
14th Dec 2023 16:14

... but OP has hide like a rhino judging from previous posts/responses, so (to mangle a metaphor or two) your sensible comments will bounce off like proverbial water does off a duck's back - leaving the teflon untarnished (albeit useless).

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Replying to FactChecker:
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By Wanderer
14th Dec 2023 16:39

Think they already have, bearing in mind those comments were originally posted over two years ago!

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RLI
By lionofludesch
14th Dec 2023 07:47

Ehhhh, will they ever learn?

You could sell the car and get your company to buy another though.

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By Leywood
14th Dec 2023 08:46

Another one who says ‘my accounts are so straightforward’ that he can file himself.

OP if they are that straightforward why oh why is it that you keep having to ask on an Accountants forum?

At least just be honest with us and say it’s because you are a cheapskate and don’t wish to pay for professional advice. Plus that you really don’t mind paying more tax than you should because you haven’t got a clue about tax planning.

Or better still, if you really insist on doing Diy, go and train as an Accountant first, but don’t forget your need to do tax exams too.

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By ireallyshouldknowthisbut
14th Dec 2023 09:10

Heh.

One of my clients did this.

Them "but you said putting an EV through the business would be tax efficient"

Me "No, I said your company could buy an EV as a company car, and the BIK would be small ."

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By cs1949
14th Dec 2023 11:46

I worded this question in first person for ease, it's actually my cousin who has only just setup her company and bought an electric car (I personally wouldn't buy one yet). I told her I'd put the question on here, but she'll no doubt be getting an accountant in the new year anyway.

Can she sell the car to her company for what she paid (using director's loan account, due to lack of funds in the business) and then claim 18% main pool allowance instead and then pay BiK?

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Replying to cs1949:
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By Wanderer
14th Dec 2023 11:49

cs1949 wrote:

I worded this question in first person for ease, it's actually my cousin who has only just setup her company and bought an electric car (I peronally wouldn't buy one yet). I told her I'd put the question on here, but she'll no doubt be getting an accountant in the new year anyway.

Can she sell the car to her company for what she paid (using director's loan account, due to lack of funds in the business) and then claim 18% main pool allowance instead and then pay BiK?

In addition to not trying to DIY for yourself the best advice I can give you is don't start giving tax advice to friends & family.
If what you are NOW saying is true your cousin has, like you, already gone about this the wrong way. She should have engaged an accountant BEFORE setting up the company & BEFORE making a large purchase.
Advise her that it's best for her to ask her new accountant in the New Year.
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Replying to Wanderer:
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By cs1949
14th Dec 2023 12:13

She has just confirmed with me that she hasn't yet actually registered the company or started trading. She will be doing it in the new year and will get an accountant.

She bought the car early last month, before she was even planning starting a business, but was just wondering if she'd missed the boat or whether the car could be sold to the business and if she'd need to do anything now before she registers the business?

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Replying to cs1949:
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By Leywood
14th Dec 2023 12:24

It just gets worse.

PLAN first.

IE get the Accountant BEFORE setting up the business, BEFORE buying anything.

That advice goes to you and all your friends and family and anyone else daft enough to try to wing it.

DO NOT, under any circumstances, give tax, Accountancy or business planning advice to anyone else.

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Replying to cs1949:
RLI
By lionofludesch
14th Dec 2023 12:24

cs1949 wrote:

She has just confirmed with me that she hasn't yet actually registered the company or started trading. She will be doing it in the new year and will get an accountant.

She bought the car early last month, before she was even planning starting a business, but was just wondering if she'd missed the boat or whether the car could be sold to the business and if she'd need to do anything now before she registers the business?

Hard to say it was bought by a company that didn't exist.

If she did transfer it in January, it will be a transaction between connected parties and a lot of the tax breaks will not be available to her.

Might still be worth doing, might not. Her accountant will need to look at the numbers.

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Replying to lionofludesch:
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By cs1949
14th Dec 2023 12:46

Thanks.

Do you mean she'll miss out on FYA as the business would be a second owner?

Is it worth her registering the business with CH sooner rather than later then?

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Replying to cs1949:
RLI
By lionofludesch
14th Dec 2023 12:57

cs1949 wrote:

Thanks.

Do you mean she'll miss out on FYA as the business would be a second owner?

Is it worth her registering the business with CH sooner rather than later then?

Too late already. She should have formed it in time for the company to buy the car.

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Replying to lionofludesch:
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By Wanderer
14th Dec 2023 13:01

If she should form a company at all. That's the first thing I'd address.

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Replying to lionofludesch:
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By cs1949
14th Dec 2023 13:10

But she'd be able to sell it to the new company and put it in the main rate pool?

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Replying to cs1949:
Stepurhan
By stepurhan
14th Dec 2023 13:13

cs1949 wrote:

Is it worth her registering the business with CH sooner rather than later then?


If she intends to operate the business through a limited company, that company should exist before the business starts. There is no such thing as registering an existing business with Companies House.

The more questions like this you ask, the more this looks like a wind-up.

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Replying to stepurhan:
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By cs1949
14th Dec 2023 13:15

She hasn't started trading yet.

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Replying to cs1949:
DougScott
By Dougscott
15th Dec 2023 00:09

cs1949 you won't get many helpful people on here but the answer is yes, she can sell the car to the company and claim 18% per annum on a reducing balance. She can also loan the company money to buy the car and charge the company a reasonable rate of interest for the loan - maybe 8% would be reasonable. It is important for anyone operating a company to have a decent accountant (or be an accountant themselves) to maximise the benefits. The company can of course pay ALL the costs of running the vehicle and most costs will be tax deductible. There will of course be a smallish BIK to pay and the company will have to pay some Class A NIC.

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Replying to Dougscott:
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By cs1949
15th Dec 2023 01:03

Thank you for this. I'll tell her and she'll now know what to discuss with an accountant when she instructs one.

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Replying to Dougscott:
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By I'msorryIhaven'taclue
15th Dec 2023 10:16

Given she's yet to start trading and that the (brand new) EV has been purchased in her name, a sole-tradership could be a better option than a limited company.

Anyone care to outline the FYA/CA ramifications of upgrading the business from sole-trader to limited company a year or two down the line?

EDIT: Hold that... she'd have owned the asset prior to commencement of trade, potentially for the non-business purpose of private motoring. Is there leeway for her to have purchased the vehicle in readiness for her new sole-tradership business - pre-trading expenditure, if you will?

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Replying to stepurhan:
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By Truthsayer
14th Dec 2023 13:28

'this looks like a wind-up.' Yes, form DS01 might indeed be appropriate for companies with this quality of financial management.

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