Personal Car Vs Company Car

M

Murph

Registered User
Messages
13
Hi Guys,
I am in the processof starting up my own company. I am also looking to buy a new car for myself. I was wondering what teh benifits woul dbe in waiting untill the company is setup and buying a 'company' car, putting the expences through the company as such or just buying a personal car.
I am working as an IT contractor so setting up a company will only be for myself to work under.
Would me having a 'company' car actually cost me more then a private car?

I have seen this issue talked about a bit on here but I never really found an answer to my question.
Any help you guys can giv woul dbe much appreciated.
Murph
 
Hi Murph

if its a company car you have the benefit of the company paying for it but you will be hit for benefit-in-kind tax for the personal usage of the car. if you are going to be doing a lot of business mileage it may be better for you to buy the car personally and claim a mileage allowance from the company for the business mileage. If you are doing a substantial amount of business travel the mileage allowance from the company may well cover the cost of you paying for the car, so in effect the company is paying for it but you own it! Before making the decision you need to do a calculation for both options to see which is best for you, if you need any assistance with it you can contact me through our website.

Paraic O'Dowd
www.prima.ie
 
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