Contract hire, pcp, finance, which is best

[Steve Bullman]

I want to pay my fuel bill from my business account not personal account

 

 

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[richy_B]

I want to pay my fuel bill from my business account not personal account

 

 

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Then the 45p can't be used.

[Steve Bullman]

Also if I want to purchase a £2k hard too for my navara I wouldn't be able to put that through the business either

 

 

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[richy_B]

The business can own/lease the vehicle and pay all the bills. Or you own the car personally and claim 45p for everything, including the fuel. My understanding of it and i am 99% sure i have it right.

[richy_B]

Also if I want to purchase a £2k hard too for my navara I wouldn't be able to put that through the business either

 

 

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This is more complicated as it has duality of purpose. The business could buy the hardtop but if you make use of it when using the car personally you have to put it on you p11d as a taxable benefit. Might be extreme but the same would be necessary if the business paid for a tow bar to be fitted for work use but you used it to tow a private caravan.

 

From what you are saying Id say you should keep your vehicle within your business for the time being. In a few years you can sell it to yourself and make use of the 45p. Obviously before that have a major service, new tyres and buy the hardtop. Just my 2 cents.

[benedmonds]

As richy_b said, if your doing the 45p a mile thing, that has to be paid from your personnel funds and is designed to cover the costs of running the vehicle so if you do 10,000 miles £4,500 a year.. This is designed to take into account depreciation and running costs and this is tax free.. As has recently been discussed in another thread it might not be enough if your running a 4x4 with trailer... but should be OK for just your pick up..

 

I think you would be OK still putting the hardtop through the business. If you can justify that it is for business use.. HMRC may disagree ...

[Kev Stephenson]

Also if I want to purchase a £2k hard too for my navara I wouldn't be able to put that through the business either

 

 

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Steve,

 

Give me a ring when you get 10 minutes. I did all this 2 years ago and it's working well. Just ordered a brand new pick up to avoid corporation tax on the orders of my accountant.

 

It all runs on director loan accounts etc, easier to explain on the phone.

 

The main question is who owns your pickup now, you with a loan or is it leased therefore Nissan (or someone else owns it).

 

Kev

[Stephen Blair]

If you can afford to buy out right do it.

If you need a new vehicle and want to keep your money in the bank lease it.

If you want to keep your money in the bank and reduce your profit , finance it.

[Steve Bullman]

Steve,

 

Give me a ring when you get 10 minutes. I did all this 2 years ago and it's working well. Just ordered a brand new pick up to avoid corporation tax on the orders of my accountant.

 

It all runs on director loan accounts etc, easier to explain on the phone.

 

The main question is who owns your pickup now, you with a loan or is it leased therefore Nissan (or someone else owns it).

 

Kev

 

Will catch up with you Kev as I am interested to hear what you did. I have decided to buy it from myself with a directors loan anyway. theres just under 2 years left on the pcp. I think I have done the right thing, not sure though.

[Arborist]

It's 45p per mile for the first 10k then 25p per mile after.