financing Elise through own company?

[girlracer]

I've been busy test driving Elises (S2's) and have pretty much decided I want one. Was planning to buy second hand (cash purchase), but I've heard a lot about what good deals Elise's are as company cars and about some good deals dealers have right now in terms of contract purchases, etc. I've never bought a car on finance before, but I do run my own company so I could justify putting a vehicle through the books if there was any advantage financially. Obviously the main advantage would be cashflow, but presumably there might also be some kind of VAT advantage?

My company is VAT registered, and I would be using the car for both business and personal use.

I realise this is something I should speak to a Lotus dealer about, but before I do that I wanted to see if anyone here had any friendly, genuine advice so I can approach the dealer armed with a bit of knowledge.

Thanks

[UpTheIron]

Company car tax is still hefty, even on a Liz.

Also, if you do any sort of business mileage then you will currently be claiming something like 40p per mile whilst using you a private car, however the IR limit for a company car (before you have to pay tax on the expense) is 14p per mile.

Of course, you could also investigate the fuel card option, but that attracts yet more tax.

I spent a couple of hours working out if it would be cheaper to put my new Chim through my company and there isn't much in it. For something more economical and hopefully cheaper to run - i.e. an Elise - it would work out better for me to run it privately.

Best bet would be speak to your accountant.

Eviden

[UpTheIron]

Company car tax is still hefty, even on a Liz.

Also, if you do any sort of business mileage then you will currently be claiming something like 40p per mile whilst using you a private car, however the IR limit for a company car (before you have to pay tax on the expense) is 14p per mile.

Of course, you could also investigate the fuel card option, but that attracts yet more tax.

I spent a couple of hours working out if it would be cheaper to put my new Chim through my company and there isn't much in it. For something more economical and hopefully cheaper to run - i.e. an Elise - it would work out better for me to run it privately.

Best bet would be speak to your accountant.

Evidently if you start looking at leasing or HP then it is another kettle of fish. Back to the accountant again!


>> Edited by UpTheIron on Monday 5th May 16:52

[girlracer]

Thanks. I do hardly any company mileage to be honest. I was basically looking for a way to avoid paying VAT by having the car as a company asset. Maybe this idea is too good to be true...

However, I know there is a deal you can get via BMW with a new Mini (personal contract purchase?) where you can basically get the car on a lease to buy deal, but if you're a business your monthly payments are VAT free. My husband has this for his Cooper S, and he does no more legitimate business miles than I do. I was wondering if there was anything similar for the Elise.

[alunr]

The same thing is available on the elise. You just need to go and see the Lotus dealer then take their info to your accountant to see how it pans out...

[Simon N]

Can someoneone give me pointers/internet sites on how to set up your own VAT registered co. I'm looking to start a small one in a few months.

Cheers

[girlracer]

Just set up a bank account for the company and then apply to Inand Rev for a VAT number. You don't have to be a ltd. company, you can be a sole trader. Even though I have 2 employees, I'm still classed as a sole trader.

[tupolev]

girlracer said: Thanks. I do hardly any company mileage to be honest. I was basically looking for a way to avoid paying VAT by having the car as a company asset. Maybe this idea is too good to be true...

However, I know there is a deal you can get via BMW with a new Mini (personal contract purchase?) where you can basically get the car on a lease to buy deal, but if you're a business your monthly payments are VAT free. My husband has this for his Cooper S, and he does no more legitimate business miles than I do. I was wondering if there was anything similar for the Elise.

Was always under the impression there is no chance of legally avoiding the VAT on cars, even for businesses (on the basis some mileage would always be personal)

On the sale BMW will be obliged to charge (and declare to C&E) VAT to whoever legally buys & owns the car (ie the leasing company) -how they charge onwards to the customer is where i guess the VAT element gets blurred into the amount your blokes’ company pays.

cheers

tupolev