hire purchase cars uk

hi, i'm graham from inca chartered accountants.our limited company owners' ask us a lot about vehicles and their business. so this videoi'm going to tell you whether it is beneficial to put a car through a company you own. the simple answer is -- it's probably not.it's down to the private use element, because any private use you have whether its 1 mileor 10,000 miles is going to incur a tax charge.

and that tax charge is going to be based uponthe value of the vehicle and its emissions. and it can be quite expensive. not only areyou going to pay tax but in addition to that the company is going to pay national insurancecharge which is nearly 15% of the value of the benefit. now usually we can get you themoney in a much more tax efficient way. there

are circumstances where you can put a vehiclethrough and it is efficient, based largely upon the emissions. there are certain typesof vehicles with very low emissions that can be extremely beneficial running through abusiness. talk to your accountant about the specific one you have in mind. another one that is interesting is vans. pickupsare actually classified as commercial vehicles and taxed accordingly. that means you canget full vat relief on them. as well as having only a certain amount of tax to pay whichis usually a lot less than the running cost on a vehicle. so if you don't put the vehiclethrough what do you do? we'll you can claim

hire purchase cars uk,a mileage rate. business miles is currently45 pence per mile and if a member of the team

goes with you, you can have an extra 5p ontop of that. but that has to cover all the costs of running it. hope this has been useful.if you would like any more tax tips give us a call.