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Company Car for Sole Director

Should a company car be registered & insured in the director's name?

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Hi Accountingwebers,

If a sole director/shareholder purchases a car in the company name and uses it for private use, am I right is saying:

1) The car is owned by the company (and claims capital allowances) but must be registered with DVLA in the director's name?

2) Car running costs, tax and insurance is paid for by the limited company (and is tax deductible by the company) but the insurance policy can be in the director's name?

3) If the car is an electric vehicle, there will be no benefit in kind on the director in 2020/21?

Many thanks in advance for your answers.

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By paul.benny
19th Nov 2019 14:00

Registration with the DVLA identifies the keeper -it's not necessarily evidence of ownership.

Some insurers are fussy about whether or not the driver is the owner and registered keeper. And you need to ensure that the insurance covers business use (if there is any). If I was to drive car owned by my company, I would also ensure that the insurance was in the name of the company.

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A Putey FACA
By Arthur Putey
19th Nov 2019 16:40

For practical purposes some insurers allow the director to put the car in their name provided they declare its a company car. Same goes in reverse for some types of finance e.g Business PCP.

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