Best way to purchase a company car

[GreenFlag]

Hi

I am a director of a small company . I want to purchase a car through the company (as opposed to privately)

If I purchase a company car can the company claim back the VAT?
Does the car have to be new to claim the vat or can I claim it back on a second hand ?
If the car is paid for in full (no finance) how is that written off against company account (standard depreciation 12.5% over 8 years?)

If finance is used to buy the car can the vat be claimed back ? upfront?

If car is purchased via finance is the monthly repayment a company cost / expense?

from a company point of view what is the best method to finance a company car if finance was to be used , bank loan? PCP? lease purchase?




thanks a mill

 

[Brendan Burgess]

I have always believed that the simplest thing to do is for the director to buy the car themselves and charge the company mileage according to the Revenue's Guidelines.

No complicated tax compliance rules for the company.
No benefit in kind calculations.
No paying accountants for tax advice and to solve tax problems arising later.

It would be different if it were a company van which is actually a van and used for carrying equipment and products to customers.

Brendan

 

[T McGibney]

I have always believed that the simplest thing to do is for the director to buy the car themselves and charge the company mileage according to the Revenue's Guidelines.

No complicated tax compliance rules for the company.
No benefit in kind calculations.
No paying accountants for tax advice and to solve tax problems arising later.

It would be different if it were a company van which is actually a van and used for carrying equipment and products to customers.

Brendan

Until about 5 years ago that was the simplest thing to do for almost everyone, Brendan. Revenue's subsequent hairsplitting on the definitions of allowable and disallowable travel expenses has complicated the question for a lot of people.

For some people, there is merit in suffering the benefit in kind tax charge and effectively having the company pay your private motoring costs. For others, the numbers don't stack up.

If the OP wants definitive answers to suit their own circumstances, they're probably going to need specific professional advice.