PCP through limited company?

PCP through limited company?

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325iMSport

Original Poster:

326 posts

174 months

Sunday 3rd March
quotequote all
I've put a deposit down for the cheap Honda Eny1 deals that were available this week - https://www.pistonheads.com/gassing/topic.asp?h=0&...

I am self employed through my own limited company and in 40% tax bracket.

Are there any financial advantages on buying the Honda through my limited company?

If so, how will it work?

yellowbentines

5,537 posts

214 months

Sunday 3rd March
quotequote all
AFAIK you can put through 100% of the purchase price (excluding extras) in the first year, and also interest on the PCP payments.

My accountant has been on at me to go full electric when I next change as I'm in the same position.

Unsure when you sell or hand back the car down the line if that part ex or gfv figure is then added back into accounts and a tax adjustment made?

Stupot123

312 posts

115 months

Sunday 3rd March
quotequote all
Some manufacturer finance houses don’t let you take out a PCP through a Ltd co, so double check with Honda if that is even an option.

A PCP is a Personal Contract Purchase.

Some do now though, so might be an option.

omniflow

2,856 posts

158 months

Sunday 3rd March
quotequote all
This may seem pedantic, but you're not actually self-employed.

You are both an employee and a director of your limited company.

Caramaze

144 posts

9 months

Monday 4th March
quotequote all
Tried that and below is the details after dis2with Honda and my accountant

1. The deal is personal only, so Honda won't be doing it via business.
2. To claim via business it has to be bch and not pcp..
3. You cannot claim the monthlies via business.
4. The mileage claim is the only option with 45p per mile for first 10k miles a year and then 25p..

However you can get charger claimed through business smile

JohnP

58 posts

290 months

Monday 4th March
quotequote all
I'm in the same position and also took the Honda deal last week.

Honda dealer had no issue with me ordering and financing the car via my company. Passed credit checks, deposit paid and car ordered.

Talked to the accountant and it looks like I can't claim the partial VAT back as I do on the current BCH electric car that I have (going back end March) but overall it still works out more cost effective than doing it on a personal basis - mainly due to the reduction on Corp Tax.



Caramaze

144 posts

9 months

Monday 4th March
quotequote all
JohnP said:
I'm in the same position and also took the Honda deal last week.

Honda dealer had no issue with me ordering and financing the car via my company. Passed credit checks, deposit paid and car ordered.

Talked to the accountant and it looks like I can't claim the partial VAT back as I do on the current BCH electric car that I have (going back end March) but overall it still works out more cost effective than doing it on a personal basis - mainly due to the reduction on Corp Tax.


which dealer was that pls... I have tried and was fobbed off lol

JohnP

58 posts

290 months

Monday 4th March
quotequote all
Honda Wakefield