The numero uno question from most of our LTD Company Clients is: “Should the director buy a car through his/her LTD Company?”
Our Answer: At first it can be a great idea in terms of saving corporation tax, but when you take a closer look at the implications, the tax saving is almost always wiped out by the personal tax liability of the Director, in the form of a Benefit in Kind (BIK).
Of course, this is a very generalised answer, and each situation is different as many points need to be taken into consideration. An easier alternative however, would be to use your personal car and claim the HMRC approved rate for business mileage.
Conclusion: Always consult your Accountant before making the decision of purchasing a company car.
If you have any questions or would like any further advice then please call our new client services help desk on 01204 243322, alternatively you can email us on email@example.com.
Appoint BW Accounting Solutions and never worry about your tax and accountancy affairs.
Abdullah Nurgat MAAT
Senior Accountant at BW Accounting Solutions