Hi,
A limited company has been turned down on finance and the finance company has asked the director to apply himself instead.
Hes a sole director, my question is will the company still be able to claim all the same costs even if the finance is not in the company name?
Thanks
Replies (7)
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What costs will it have? If it’s not incurring any costs then obviously it cannot claim anything. If the company needs a van and the director has a van, perhaps the company can come to some arrangement with him to use it? What does the finance company allow?
I fail to see how AIA can be claimed if the vehicle is not owned by the company and the company is not named on the invoice.
Yes, with a small amount of luck 100% AIA and all the running costs will never be picked up on but in case of a random compliance check, not a chance.
As Tim mentioned, some kind of agreement must be prepared which is tax neutral for the director, and which will allow the company to claim the running costs and when the hp is paid off the director can then sell the vehicle to the business at the market value.
Best and safest option is for the director to claim AMR from the company based on business mileage. Tax free for the director and tax deductible for the company.
Alternative is 45p per mile.
Edit
Did not read all the way to the bottom.
Quite a few of my clients are better off, but usually the ones who buy cheap vans.
Quite a few of my clients are better off, but usually the ones who buy cheap vans./p>
If he keeps it long enough it will still be a win.