I am one of the Directors of a company, and I wish to buy a new car (not brand new). Would I save any money by buying the car via the company, or is this now pointless due to company car tax changes? I was reading about contract hire ? I am in 22% tax band.
Car Purchase through Company
Oct 21, 2003
3 Replies
You have to do the calculations to be sure.
Probably not. The car will be treated as a taxable benefit, and the company will also have to pay NI on it. Against that, the company will get some capital allowances.
As others have said it depends on your individual circumstances. My accountant worked it out and told me to use the mileage allowance instead which has worked out very nicely for me (I only really do business mileage)
Others have told me that contract hire is good but overall I have been told that if you are not that fussy about having a brand new vehicle the best way is to buy something cheap than use the mileage allowance.
Andy
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