Business Car

eas

Hi,

Was not sure where to ask this question..think this is probably the best place.:)

I'm looking to get a 2nd car, mostly for my business. It would be a used car with a value of around 10K. I'm hoping to be able to claim the purchase as a business expense. Just wondering if there is anything I should be aware of?

Thanks for the help.

Mr Clonfadda

If you buy car in name of the business i will attract a taxable Benefit in Kind (BIK) Charge Based on OMV (Original Market Value). IMO you would be better off to buy car in your own name and then pay yourself mileage tax free for business use.

eas

thanks Nigel. Very good advice.

Baby4

This post has been deleted.

Mr Clonfadda

yes sorry assumed it was a limited company. If you are a sole trader and are registered for VAT if you went for a van you could claim back VAT on the purchase price and also if Diesel claim back vat on diesel. you also will be able to offset any expenses ie servicing etc. against income.

beka

leasing is a good option short term. But wont there be a tax hit at the end of the lease?