Buying or Leasing a car through a Limited Company (UK)

Buying or Leasing a car through a Limited Company

I am not an accountant, please speak to your accountant before you do anything! this video is designed to offer a little initial guidance when it comes to buying or leasing a car via your limited company. Buying a car through a business can be very tax efficient if you do it the right way, but can also be a really bad idea. I hope this video helps.

#carbuying #accountancy #limitedcompany
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Important : This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.

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𝙋𝙡𝙚𝙖𝙨𝙚 𝙡𝙞𝙠𝙚 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚! ;)

[NumberHeadlightRestoration]

Great explanation, thanks Jim. Not something I'll be planning to do anytime soon, but I do like to try and know about stuff like this. Watching you talk about it is much easier going than trying to read about it haha! 👍🏼

[Andrea-sley]

Some other points to bear in mind too, the financing arrangement obviously appears on your company credit file rather than your personal one, if your company is registered to your home address you can claim the £350 grant for the charger installation and if you make a personal contribution up to £5k (for example, for the deposit), this can be offset against the BIK value. For me, the numbers stacked up even on a petrol plugin hybrid and I collected my new car yesterday.

[AntCooke]

Nice one Jim. We don’t put the lease through the business but we do claim the mileage.

[gregshipsey]

Just a note on buying a used EV in a company main pool writing down allowances are calculated using a reducing balance not straight line. So it would be £7, 200 capital allowances in year 1 £5, 904 in year 2 (£32, 800*18%) etc. just a technical point from a Corporation Tax advisor 😊

[tommytip]

Hi Jim just to note even if you don't pay the full cost of the car but buy it via the company using a loan you can also claim year 1 the full capital allowance on the car.

[samteknic]

Worth mentioning.. a) the 100% WDA is currently due to end in April 2025. And b) you can only claim back VAT if you’re a VAT registered business.

[AnotherBoringyearold]

our tax specialist tells ; advises to get on hire purchase lease in company name for tax purposes
limited company with two directors

apparently the best way for tax for us

[sanchz]

Is it worth leasing a car through your company if 95% of the time it’s for personal use and the other 5% is business use?

[faisalam]

Can I insure my wife on a car I'm leasing through my Ltd Company