Want to Purchase Commercial Vehicle through Ltd Company

T

Tom Brady

New Member
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7
Hi All,

I hope you are well and happy.

Question for you all, I need to buy a vehicle for conducting business activities, visiting site, meetings etc.

I want a vehicle with 5 seats for the following reasons;

1. Its a professional service and I think a 5 seater, car, jeep etc. is more in keeping with the genre of the services.
2. It may be necessary to visit site and meetings and bring clients with me so more than one spare seat would be necessary.

I am aware of BIK taxation and I do not want to get involved with this, the purpose of the vehicle would be almost always be for business use.

So, it it possible for me to buy a 5 seater (Car, jeep etc.) through the business and tax it and ensure it through the business also.

Thanks All and happy new year.
 
Yes, the Limited company can buy a car. The company can then pay the car tax, insurance, NCT and maintenance.


You are aware of BIK but I will just include this table as this will be what is applicable:

Business mileageApplicable percentage per vehicle Categories
lower limit (kilometres (km)Upper limit (kilometres (km)Vehicle category AVehicle category BVehicle category CVehicle category D Vehicle category E
026,00022.5%26.25%30%33.75%37.5%
26,00139,00018%21%24%27%30%
39,00148,000*13.5%15.75%18%20.25%22.5%
48,001*And above9%10.5%12%13.5%15%
 
You will have to park the vehicle outside 'the works' at night, if it goes home BIK is payable. If the works and home are the same address Revenue will deem it as going to your home.
 
Every pub and restuarant seems to be doing this now as well. Difficult to see the business use.
 
Probably best to run this idea by your accountant and/or a tax expert if necessary.
No point in doing something that might have unexpected implications for your business (and possibly also personal) tax affairs.
 
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