Property LTD Company
Discussion
Has anyone leased a car through a property company as a landlord? I have been told this is not really a goer and struggling to find anything in searching.
Currently the business is 1 year old since incorporation and has one property and will have more being purchased and managed in the next few years. I will not be able to claim VAT as the turnover is less that 75k just more looking at it as angle to spend the cash in being generated by the rental income.
Appreciate any guidance as my accountant is straight as an arrow (good thing!) and would like to propose only if it make sense.
Currently the business is 1 year old since incorporation and has one property and will have more being purchased and managed in the next few years. I will not be able to claim VAT as the turnover is less that 75k just more looking at it as angle to spend the cash in being generated by the rental income.
Appreciate any guidance as my accountant is straight as an arrow (good thing!) and would like to propose only if it make sense.
It depends why you've been told it's not possible. Due to the ability to finance or whether it's legitimate? It's perfectly legitimate, so it'll be down to whether the company can get a lease due to the age of the company/finances. If the company is turned down, you may be able to guarantee it personally? I've not had a company try PGs, so no idea if that's possible.
For your information- VAT registration doesn't have to depend on turnover of £75+. I'm presuming the company owns residential property where VAT can't be charged, but if it's commercial you need to have a good chat with your acountant.
For your information- VAT registration doesn't have to depend on turnover of £75+. I'm presuming the company owns residential property where VAT can't be charged, but if it's commercial you need to have a good chat with your acountant.
Thank you for the response mate. There is fountain of knowledge in this forum 
Yes it would be around legitimacy - I was told by someone that it would be unjustifiable expense with one property in the business at this stage. On the point on it being a new company yes as you said I can sign a personal guarantee with finance company which would be no issue at all. Thanks for input on VAT didn't know that and you are correct its residential.
Yes it would be around legitimacy - I was told by someone that it would be unjustifiable expense with one property in the business at this stage. On the point on it being a new company yes as you said I can sign a personal guarantee with finance company which would be no issue at all. Thanks for input on VAT didn't know that and you are correct its residential.
Some costs are unjustifiable in relation to certain trades. However HMRC are pretty silent on the subject of company cars and a company can choose to lease a vehicle pretty much whatever the circumstances. As long as the director/employee is taxed via a BIK, then all is good.
To give you an idea of how relaxed HMRC are:
PAYE: 480:Chapter12
'12.37
Where an employee has 2 or more cars made available at the same time each car has to be considered separately. As car benefit arises on cars ‘made available’ these employees are likely to have 2 or more car benefit charges in a tax year. No account of any other car should be made when calculating the benefit for each car provided.'
To give you an idea of how relaxed HMRC are:
PAYE: 480:Chapter12
'12.37
Where an employee has 2 or more cars made available at the same time each car has to be considered separately. As car benefit arises on cars ‘made available’ these employees are likely to have 2 or more car benefit charges in a tax year. No account of any other car should be made when calculating the benefit for each car provided.'
Thanks again chaps and interesting points. It will be electric for sure looks like I need to speak to my accountant on this point. I think there will be aspects of personal v business mileage but honestly not looking for any tax benefit here more spend the revenue and not sure why it seems so complicated. I guess all tax is that way!
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