LTD Company second car

[Mirinjawbro]

Hello

just about to start a new job where i can use a limited company. (IT work)

is it possible to buy a second car as part of my company?

never done this before. not sure how any of this works

benefits etc. tax deudction

thanks

[Burrow01]

When you say a second car, you mean a second car for your household funded through the company?

You can do this, but if you buy a petrol or diesel car the Benefit In Kind tax you pay on the value of the vehicle will probably wipe out the savings.

If you by and EV or a Van / Pickup truck (with the right qualifying characteristics) then the BIK is reduced and it can make financial sense to run the car through the company.

Your accountant will be able to do the calcs for you on the pros and cons

[Mirinjawbro]

Burrow01 said:

When you say a second car, you mean a second car for your household funded through the company?

You can do this, but if you buy a petrol or diesel car the Benefit In Kind tax you pay on the value of the vehicle will probably wipe out the savings.

If you by and EV or a Van / Pickup truck (with the right qualifying characteristics) then the BIK is reduced and it can make financial sense to run the car through the company.

Your accountant will be able to do the calcs for you on the pros and cons

second car for household funded through

as my other thread on car vs van im looking for a second car for pets / trips / dump runs (an estate or van )

thanks

[Eric Mc]

The general rule is that company cars aren't worth it (unless special rules apply). A SECOND company car makes even less sense.

HOWEVER, a company VAN (or other type of recognised "commercial vehicle") MIGHT be worth considering as vans are treated far more leniently from a Benefit in Kind situation.

HOWEVER, if the first thing a person thinks about when they are setting up a limited company is how many cars they can run through the company, I would suggest that they might have their priorities slightly skewed.

[Puzzles]

In general it’s not worth it, unless it’s a van or an EV.

[StevieBee]

Eric Mc said:

HOWEVER, if the first thing a person thinks about when they are setting up a limited company is how many cars they can run through the company, I would suggest that they might have their priorities slightly skewed.

Absolutely this!

Also worth noting that if you use your existing car for business related purposes, you can claim 0.45p per mile from the business to cover this. This is not taxed.

[omniflow]

Also.......

Anyone choosing to post this in "Jobs and Employment Matters" really doesn't understand the landscape they are operating in.

This is nothing to do with employment - it's purely a business decision.

[Mirinjawbro]

omniflow said:

Also.......

Anyone choosing to post this in "Jobs and Employment Matters" really doesn't understand the landscape they are operating in.

This is nothing to do with employment - it's purely a business decision.

thankyou for that contribution. it filled me with joy and glee


i'm looking for a second run around car currently and also have recently started a new role outside IR35.

warm regards

[IJWS15]

As above, it isn’t worth it. Your ltd company will need to pay employers NI on the benefit as well as any tax implications.

Speak to your accountant, it IS worth having one.