Hire purchase agreement in Director name ok ?

I am lookings to buy an electric car through my company.

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Hello

 

I'm looking to buy a 100% EV and will pay some down and the rest is HP over 3 years.   The finance company says application must be in my name. (Company has been going over 10 years but no credit history) 

Will this cause an issue if I wish to avail of 100% capital allowances? Or if I wish to have the LTD paying for maintenance and insurance.   I am the sole director of the LTD company.

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By Accountant A
29th Oct 2019 11:29

account-sam wrote:

Will this cause an issue if I wish to avail of 100% capital allowances?.

Yes.

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By account-sam
29th Oct 2019 11:33

So the HP needs to be in company name only?

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By Accountant A
29th Oct 2019 11:34

account-sam wrote:

So the HP needs to be in company name only?

Yes

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By Mr_awol
29th Oct 2019 11:46

If you were my client I'd be happy to discuss with you the options available which might actually give you the result you want (or better, depending on your planned period of ownership). I suspect your own accountant would similarly be happy to do this. It might mean a small cost in professional fees, but it would be substantially more reliable than asking a bunch of strangers on the internet (some of the posters on here you wouldn't trust to look after your drink whilst you went for a [***], let alone trust them to look after your finances).

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By paul.benny
29th Oct 2019 17:06

Agree. There are all sorts of possible solutions - not least, using a finance company that is bit more helpful. As Mr awol says, your accountant is likely to be more reliable and can take account of any other factors such as the benefit in kind arising from a company car and the tax position of your company.

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By JDBENJAMIN
30th Oct 2019 11:18

Ask your accountant, not us.

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