Hello all…I am a new user to this site and would like to say Hi to all.
I have been a HGV driver for 10 years + but now considering in going LTD as I have never done this before and have heard there are many benefits to this.
I am mainly interested in the best tax saving way to update your vehicle and run it, be it a purchase lease on any other.
Are there any restrictions on the size of vehicle etc. Can I claim for purchase/lease and mileage allowance or just 1?
I would be using the vehicle for 80% work and 20% private use,
Just also need confirmation that it would be classed as business use it I use it from home and to work place.
Thank you
I doubt it would be financially viable, youd have to be doing some serious mileage, not to mention the financial outlay of either capital cost, or regular monthly payments for contract car leasing, with the possibility of some big charges for going over the allowed mileage. There also addition insurance required to cover the offset should you destroy the vehicle before the lease term expires. I think youd best speak to an accountant asap
If your company buys or leases a standard car for you, you will have to pay Company Car tax on it via your PAYE. If it’s a commercial vehicle, then it’s a different story, but there are tax implications of taking home a commercial vehicle.
Speak to an accountant, they will know the best thing for you to.
scousedave:
I am mainly interested in the best tax saving way to update your vehicle and run it, be it a purchase lease on any other.
Are there any restrictions on the size of vehicle etc. Can I claim for purchase/lease and mileage allowance or just 1?
I would be using the vehicle for 80% work and 20% private use,
Just also need confirmation that it would be classed as business use it I use it from home and to work place.
Thank you
You either claim for the purchase/lease in which case you claim actual running costs (80% of them in your case) or you claim mileage. You cannot claim both.
The only way to claim for both would be for the Ltd Company to lease the vehicle then you be provided it as a company car as an employee of the Ltd Company and paid the company car rate of mileage allowance which is far lower but then you would be liable for tax as company cars are a taxable perk.
Also remember lease cars tend to have ridiculously low annual mileage allowances such as 10,000 miles.
As for the business use, it depends. If its to one place of work then that is classed as commuting and HMRC also have leeway to class travel to work within a certain area as commuting as well.
scousedave:
Hello all…I am a new user to this site and would like to say Hi to all.
I have been a HGV driver for 10 years + but now considering in going LTD as I have never done this before and have heard there are many benefits to this.
I am mainly interested in the best tax saving way to update your vehicle and run it, be it a purchase lease on any other.
Are there any restrictions on the size of vehicle etc. Can I claim for purchase/lease and mileage allowance or just 1?
I would be using the vehicle for 80% work and 20% private use,
Just also need confirmation that it would be classed as business use it I use it from home and to work place.
Thank you
Wrong place to ask for definitive legal/accountantcy advice!
My accountant, who is ■■■■ hot, told me not to bother and just buy a car privately. A company car is seen as a liability rather than a benefit nowadays.