Purchase company asset but finance in personal name
Discussion
So this could be a complete non starter but...
I'm putting an EV purchase through the company. Not getting a great rate (13% APR) which is fair enough in light of recent trading history.
Personal credit is fine, and income is sufficient to purchase the EV personally through an HP. However, tax savings are such that its better to do through company.
Is there a construct whereby the company can buy the EV but i finance it personally? Don't mind papering the relationships between the parties properly. If there is some mileage, don't mind getting proper advice. Just rather get laughed at on an internet forum than in person or over the telephone.
Thanks!
I'm putting an EV purchase through the company. Not getting a great rate (13% APR) which is fair enough in light of recent trading history.
Personal credit is fine, and income is sufficient to purchase the EV personally through an HP. However, tax savings are such that its better to do through company.
Is there a construct whereby the company can buy the EV but i finance it personally? Don't mind papering the relationships between the parties properly. If there is some mileage, don't mind getting proper advice. Just rather get laughed at on an internet forum than in person or over the telephone.
Thanks!
I'm struggling to to understand the logic here, BeeBopp.
You want your company to purchase an Electric Vehicle that you then want to buy from your company on finance.
Theoretically, I can't see anything that would prevent you doing this and would require nothing other than a written agreement between you and - er - you (your company). But there's some complexity to consider in terms of the dispersal of tax liabilities and the like. Are the tax savings really significant enough to warrant all this?
I believe there are also laws on 'fair market value'. So if the company purchased a £50k Tesla, it couldn't sell it to you the next day for £50 and chalk that up as a loss.... just in case that's what you were thinking.
If you fancy the car and can afford it, buy it yourself.
If you need the car to do your job, then run it through the company.
You want your company to purchase an Electric Vehicle that you then want to buy from your company on finance.
Theoretically, I can't see anything that would prevent you doing this and would require nothing other than a written agreement between you and - er - you (your company). But there's some complexity to consider in terms of the dispersal of tax liabilities and the like. Are the tax savings really significant enough to warrant all this?
I believe there are also laws on 'fair market value'. So if the company purchased a £50k Tesla, it couldn't sell it to you the next day for £50 and chalk that up as a loss.... just in case that's what you were thinking.
If you fancy the car and can afford it, buy it yourself.
If you need the car to do your job, then run it through the company.
Hi - thanks for your thoughts.
Whether i buy via company or personally, both would be hire purchase so on finance.
If the finance is in my name, the APR is 6.9%. If the APR is the company's name, the APR is 13.9%. On a £110k car, the difference is noticeable. It narks me that if though the company, I give a PG. And I'm putting 30k down on on deposit, The degree of risk the lender is taking is small in my view.
So the construct would be that the company buys the car, but the finance is in my name. This saves me £15k over the life of the finance. Not that I want the company to buy it and then i buy it from the company.
Whether i buy via company or personally, both would be hire purchase so on finance.
If the finance is in my name, the APR is 6.9%. If the APR is the company's name, the APR is 13.9%. On a £110k car, the difference is noticeable. It narks me that if though the company, I give a PG. And I'm putting 30k down on on deposit, The degree of risk the lender is taking is small in my view.
So the construct would be that the company buys the car, but the finance is in my name. This saves me £15k over the life of the finance. Not that I want the company to buy it and then i buy it from the company.
BeeBopp said:
So this could be a complete non starter but...
I'm putting an EV purchase through the company. Not getting a great rate (13% APR) which is fair enough in light of recent trading history.
Personal credit is fine, and income is sufficient to purchase the EV personally through an HP. However, tax savings are such that its better to do through company.
Is there a construct whereby the company can buy the EV but i finance it personally? Don't mind papering the relationships between the parties properly. If there is some mileage, don't mind getting proper advice. Just rather get laughed at on an internet forum than in person or over the telephone.
Thanks!
Make a Directors Loan to the company.I'm putting an EV purchase through the company. Not getting a great rate (13% APR) which is fair enough in light of recent trading history.
Personal credit is fine, and income is sufficient to purchase the EV personally through an HP. However, tax savings are such that its better to do through company.
Is there a construct whereby the company can buy the EV but i finance it personally? Don't mind papering the relationships between the parties properly. If there is some mileage, don't mind getting proper advice. Just rather get laughed at on an internet forum than in person or over the telephone.
Thanks!
Use Directors Loan to finance EV
Use mahoosive capital allowances to reduce CT
Repay Directors Loan
Gassing Station | Business | Top of Page | What's New | My Stuff