Jump to content

company car tax via SPV


Recommended Posts

Hi Thought this may be of interest to people who use an SPV to buy property. I happen to have both SPV & BTL's in my personal name

I was looking to buy a new car and i decided to look at doing it via my SPV:

I am buying a car within my SPV so the car will go into the company name and the company will pay the finance. This feels tax efficient as i am paying with company money not mine, and it reduces Corporation tax too. The company will provide me with a P11D and i will pay personal tax on the benefit, but this is low as i am buying a fully electric vehicle.

However i am replacing my own car and i have 10 years No Claims Bonus (NCB), therefore i would like to insure the car utilising my NCB! So my assumption is i can put the insurance in my name, declare the company ownership of the car to the insurance Co. (similar to when you lease a car), and claim the cost of the insurance as a business expense too.

Anyone know if this is correct? or done it themselves? 

Before i get the obvious answer of speak to the accountant, i am doing that Monday but thought it would be useful to go pre-empted and use the accountant as a confirmation. Also thought others may be interested in the answers/thoughts

 

Link to comment

I don't quite know the in's and outs however I recall speaking to my accountant about doing this exact same thing (as well as claiming other expenses through our SPV) and he told me it wasn't possible because its an SPV not a standard LTD Company.

One thing you could ask is if you can set up a separate LTD company as a sister company to your SPV and "use their services" for your SPV although I fear the tax man may be clamping down on this.

I would still speak to your accountant though as I may have interpreted mine wrongly. 

Link to comment
  • 2 weeks later...

Hi, I have bought the car, no issues from accountant other than I have to be set up as an employee with 0 salary.

I also financed it via black horse without an issue, other than as the director I had to guarantee payments, but didn't have to go through the rigmarole and cost of having solicitor validate the directors guarantee

Link to comment
1 hour ago, amasonestates said:

Hi, I have bought the car, no issues from accountant other than I have to be set up as an employee with 0 salary.

I also financed it via black horse without an issue, other than as the director I had to guarantee payments, but didn't have to go through the rigmarole and cost of having solicitor validate the directors guarantee

Good to know, I'll have a word with my accountant! 

Link to comment
  • 7 months later...

Yes I did, all worked out smoothly, see other answers about becoming an employee. But basically it took about 5 min phone call, and then the purchase process was no different than buying in my own name. Just a big saving on tax 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...