If you want a company car and are looking to mitigate the company tax, VAT and benefit in kind tax then this video is for you. Let me us know in the comments your thoughts and experiences of getting a company car. 1:32 - Should you lease or buy a company car through your limited company? 2:30 - The limited company tax implications of a company car. 3:22 - The personal benefit in kind (BIK) implications of a company car. 4:17 - A useful company car benefit (BIK) calculator. 9:23 - What About VAT? 10:00 - How to Pay 0% Tax On Your Company Car 11:10 - What's The Alternative To Buying or Leasing A Company Car? 11:30 - Recap
Great video, simplified everything however what's not 100% clear is if you lease an EV what are the tax implications to the business. It is clear that 100%FYA if purchasing but what if leasing, and therefore an operating lease?
I'm a LTD company, I want to get an EV. The car will be 90-95% business use, my wife has a car I can use but inevitably there will be the odd occasion when I may have to use the lease car for some personal mileage. Is there a way to record what miles are business and those that are personal? This sounds like just 1 mile of personal use and you then have to pay 50% vat, which seems silly, but then we are talking HMRC?
The point I didn't see addressed is the initial rental payment. Is it better to pay as little as possible or 6 or 9 months upfront. Is that tax deductible in year 1, and does it ultimately mean the lease ends those number of months early?
What about employee benefit in kind I have had questions regarding this an employer is selling health insurance and life insurance then classing it as a benefit in kind and hitting employees with a tax bill
Hello, thanks for a great video. Everything seems very clear apart from one thing for me. On some websites it is mentioned that FYA is reduced by the amount of personal use - is this correct i.e. if you're not using car for business that much, would this wipe out all the benefit of saving corporation tax via FYA or 18% winding down allowance?
Quite often, company cars are assumed to have private use, as is the case in most situations - only if a company pool car is provided where you leave and park the car at work premises is it considered fully business related
This is a great Video thank you. I am trying to work out exactly what my company car actually costs me per month and how much better off I could be if I switched to an electric. I understand how to work out the BIK % of my current car (which is a VW Passatt Estate), the BIK is £8,445 so at 20% the tax payable is £1,689. But does this mean that's all I will be better off for if I didn't have a company car or had a low % electric. What about how this would change my tax code because effectively i will have £8,445 more tax free amount. Can anyone help please as I can't get my head around that
Hi Kam, the simplest thing to do for a private vehicle is to claim mileage allowance. More details here >>> www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
Hi vantablack thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/
Hi D P, thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/
Hello! Thanks for a great video on this. Very clearly structured and explained. I have a question - based on IFRS 16 (effective 2019), operating leases are to be recognised in the Balance sheet. Am I missing something from this? Looking forward to your response! Thanks
If you want a company car and are looking to mitigate the company tax, VAT and benefit in kind tax then this video is for you. Let me us know in the comments your thoughts and experiences of getting a company car.
1:32 - Should you lease or buy a company car through your limited company?
2:30 - The limited company tax implications of a company car.
3:22 - The personal benefit in kind (BIK) implications of a company car.
4:17 - A useful company car benefit (BIK) calculator.
9:23 - What About VAT?
10:00 - How to Pay 0% Tax On Your Company Car
11:10 - What's The Alternative To Buying or Leasing A Company Car?
11:30 - Recap
Thanks for the time stamps
The best video that I’ve watched explaining the options . Marque (mark) = brand. Marquee = big tent, made me chuckle.
Hi Tom Martin thank you for your positive comment and support 😊 A small hiccup in the video, but at least it made you chuckle
Really helpful. Gave me advice I had failed to find elsewhere - thank you.
You're welcome!
Please do a video on commercial vehicles. Vans and pick ups
Hi Dan, we will put this request on our roadmap.
Don’t forget to include taxi’s also please
Great video, simplified everything however what's not 100% clear is if you lease an EV what are the tax implications to the business. It is clear that 100%FYA if purchasing but what if leasing, and therefore an operating lease?
I'm a LTD company, I want to get an EV. The car will be 90-95% business use, my wife has a car I can use but inevitably there will be the odd occasion when I may have to use the lease car for some personal mileage. Is there a way to record what miles are business and those that are personal? This sounds like just 1 mile of personal use and you then have to pay 50% vat, which seems silly, but then we are talking HMRC?
The point I didn't see addressed is the initial rental payment. Is it better to pay as little as possible or 6 or 9 months upfront. Is that tax deductible in year 1, and does it ultimately mean the lease ends those number of months early?
Enjoyed the video. I wonder if anyone has done this with a model X,
Also what happens with your car if you wind up your limited company.
Quality 👌🏿
Thank you The Bizness - we're glad our content is empowering you.
For a new LTD without historic accounts (changing from sole trader to Ltd.) is it possible to arrange a lease with a personal guarantee?
Yes there is a vanorama video staying just that
What about employee benefit in kind I have had questions regarding this an employer is selling health insurance and life insurance then classing it as a benefit in kind and hitting employees with a tax bill
Hello, thanks for a great video. Everything seems very clear apart from one thing for me. On some websites it is mentioned that FYA is reduced by the amount of personal use - is this correct i.e. if you're not using car for business that much, would this wipe out all the benefit of saving corporation tax via FYA or 18% winding down allowance?
Can the 100% FYA be carried to the next company year if you are unable to use all of it in the current year of trading?
Great Video. Thanks!!
You're welcome Upul Indika.
Can i used company car personal use ?
Great video :)
You're welcome Andre, and thank you for your supporting comment.
This is silly how are they gonna know when it’s been used for personally ?
Quite often, company cars are assumed to have private use, as is the case in most situations - only if a company pool car is provided where you leave and park the car at work premises is it considered fully business related
This is a great Video thank you. I am trying to work out exactly what my company car actually costs me per month and how much better off I could be if I switched to an electric. I understand how to work out the BIK % of my current car (which is a VW Passatt Estate), the BIK is £8,445 so at 20% the tax payable is £1,689. But does this mean that's all I will be better off for if I didn't have a company car or had a low % electric. What about how this would change my tax code because effectively i will have £8,445 more tax free amount. Can anyone help please as I can't get my head around that
Great video. Does this only apply to new cars or does it also apply to second hand cars?
Hi Basil, thank you for your positive sentiment. It only applies to new cars.
Not anymore tax is over £300
Great video
Thank you chansons123.
6:33 2400cc engine.
can you let your ltd borrow your personal car through an agreement (not lease) the ltd then pays for all running costs incurred through usage
Hi Kam, the simplest thing to do for a private vehicle is to claim mileage allowance. More details here >>> www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
Is it possible to buy a company EV car through a UK limited company, if the director lives outside the UK, for example in the republic of Ireland?
Hi Steve - from a tax perspective yes it is, as its your UK company buying/leasing the car and not you as an individual
good stuff :-)
Thank you Stephen
So to clarify, if I lease a PHEV with 46 miles pure electric range, CO2 emissions of 26g do I still pay benefit in kind tax?
Hi vantablack thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/
got life
So if buy a car for 50k throughy ltd , does that mean I can offset 50k against my corporation tax for that tax year ?
Hi D P, thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/
Really nice explained, I would like to transfer my own car to my Ltd., do I have to fill up any paperwork?
Hi Mihail, yes there is procedure that involves formal paperwork.
@@tonydCFO do you have an email? Thanks
Hello! Thanks for a great video on this. Very clearly structured and explained. I have a question - based on IFRS 16 (effective 2019), operating leases are to be recognised in the Balance sheet. Am I missing something from this?
Looking forward to your response! Thanks