LIMITED COMPANY CARS - COMPANY CAR TAX BASICS (UK)

[@ashbashbosh9315]

This is the kinda stuff I need to know. Love what your doing. Keep it up 💪 👌

[@HeelanAssociates]

Glad you enjoy Ash.

[@ZenfinityTV]

Very useful advice on company cars! Tesla is a sound choice that's sustainable and luxury for clients to see!

[@HeelanAssociates]

Right now yes, good tax choice at least in the short term.

[@terrydavis9713]

You are brilliant at explaining things! Could you possibly make a video on buying or leasing a Van through a limited company. Just the tax benefits and what is best? Thank you and keep up the fantastic work!

[@HeelanAssociates]

Glad you enjoy :) will add to the list

[@jheath102]

This would be really helpful!

[@trixpeace3197]

Thank you and very clear and precise with efficient short explanation! Also very helpful reading your answers in comments.

[@HeelanAssociates]

Glad it helped Trix!

[@WillJCopp]

Really clear, concise information! Thank you.

[@HeelanAssociates]

Thanks Will glad you enjoyed.

[@raintosleep_]

Hi. Great content. Could you do a video related to tax, limited company's and health and dental expenses / insurance. Thankyou

[@HeelanAssociates]

This has been on the list a while, so hopefully soon!

[@r.v6290]

the current system is just utterly disgracefull. its one thing after another with taxes it does not allow for prosperity and growth in small business! it doesnt shock me that billion dollar businesses are not paying tax on profits. maybe if everything was a little more relaxed you would get less tax evasion, growing small businesses, and more money in peoples pockets to spend

[@SourCrossy]

And the current government claim to be pro small business too. It’s shocking country is in the toliet

[@HeelanAssociates]

It certainly feels now that policy is not lending the same support to growth as it was.

[@Tobystoysneca]

What’s the max you can claim on multiple Rooms needs at a rented property for media work? Ie one room for video production, 2nd for music and third for storage instruments, cameras, lighting etc

[@HeelanAssociates]

Are you talking about tax claim in a limited company, as a director using your rented property in part for business? This may help www.heelanassociates.co.uk/working-from-home-expenses-limited-company/

[@themullens8958]

Ok so I have one for you. Hold tight. I bought a commercial vehicle back in December on finance. Obviously still paying it off. Realised that yes it's great for towing for the business but awful for the family. So tried to get another car on finance for personal. They said unless I move the truck to the business they can't give me more finance. I've moved it for the finance to come out of the business account but seems this iant enough? What else do I have to do to move it to the business? Ps. The business is very very new. Like 4 weeks new. I have other companies but they wouldn't warrent needing a commercial vehicle

[@HeelanAssociates]

Hard to say without sight of the paperwork and transactions - it’s really a matter of who is the contract/finance with, and for accounts purposes who ‘owns’ it, but does depend on type of finance etc.

[@DP-bo4yw]

Great video. If I bought a tesla throught my Ltd, After how many years can I write off the car from books ? How much can I claim per mile for electric for a car bought through Ltd?

[@HeelanAssociates]

Bit too difficult to cover in a comment, have a read here for starters www.heelanassociates.co.uk/tax-rules-on-electric-vehicles-a-brief-guide/

[@DP-bo4yw]

@@HeelanAssociates thanks for the link. I've read it but there isn't anything on the link that answers my question. Did I miss something ?

[@gunit3852]

Excellent video. I have the following situation and I am interested in your opinion. A man from England wants to send me a car through an LTD company. He wants to cover all the transport costs. Just in order to complete the transaction, I have to pay money to their account and only then they send me the car. What do you think about that? Is there a chance that I could be scammed? Best Regards

[@HeelanAssociates]

I think you have to be very careful about this, and understand who you are paying like any transaction. Could it be a scam, absolutely. Could it be legit, also very possible.

[@sonalipoelastic7882]

Hello Thank you for your video, quick question. For self charging hybrid (Kia Niro) is it better to lease the car personally or through the company? Of course if I took the lease on personally the company would pay for the car into my wages. Not sure which option is more beneficial for me

[@HeelanAssociates]

We couldn’t say specifically as it’s so dependant on individual circumstances but have you seen this one? ELECTRIC CARS AND HMRC - ARE THEY TAX DEDUCTIBLE IN THE UK? kzbin.info/www/bejne/j3K0aGh8abqeY8U

[@baldeepbirak]

I use my personal car for work. Much simpler. Don't drive much either so better off this way.

[@HeelanAssociates]

Just remember to claim the mileage for your business miles....

[@woodworks2123]

When you go to buy or lease it who do you put when your filling in the details, the company name or the say director? If its a director then would a director not own the car even though the payments came out of company funds?

[@HeelanAssociates]

Paperwork / contract needs to be in company name if that’s the intention. Can be difficult to get funding on a new ltd though.

[@EnyaChinae]

Hey, if someone decided to still go forward and get a car through their LTD, what would they need to provide in order to purchase the car?

[@HeelanAssociates]

Depends on the dealer, if finance is involved they may want several years accounts and numbers. If you are paying with own funds or company money likely just need purchase invoice and enter into the books.

[@waynecmontgomery]

Thanks, Dan, I have another question, what about owning a house in the name of a limited company? I am a company's director located in America.

[@HeelanAssociates]

Hi Wayne, possibly a bit too much to answer in a comment sadly! Limited company property ownership has some benefits and many downsides, depending on what your goals are. Sorry that's not more helpful, but too much to cover here :- )

[@PythagorasBoots]

Hello, this is a brilliant video. I am only in my 2nd year of business and where I feel any profits I make are best served reinvesting into the business, I feel it would be a shame to not take advantage of any benefits for a company car made through effective tax planning. May I ask, is there any significant tax efficiencies to be gained when using the super deduction scheme to purchase a pickup truck? Another question relates to a 100% first year allowance with electric cars.. do you have to have available company profits? or can you for example obtain the vehicle which could potentially turn any company profits into losses and carry these over to the next year so if/when you make a profit the following year you can use the previous losses to offset? For example if I had £6000 company profits left and the electric car was £15000, could it be purchased meaning the company make a loss of £9000 and carry that over to the following year? Many thanks

[@HeelanAssociates]

Glad you found it useful. Some of this is a little specific/would need more detail, but i'll give you some highlights! - Yes *generally* you can carry a trading losses forward to use against future profits after wiping out the current ones. - With buying anything, standard thing we would say is only buy it if you need it, don't buy it to save tax. So for example, yes if you bought a pickup there is some decent tax relief, but only do it if you needed to invest in it anyway.

[@Jessicarhino]

I wonder, is it technically possible for a company to buy a car, using its money, put it through the books etc, but actually register in a persons name for lets say insurance purposes? The registered keeper in theory does not have to be the owner of the car, so I wonder can this be done?

[@HeelanAssociates]

For tax purposes/relief it needs to be clear the company owns the asset.

[@StanislawWozniak]

Hello, thanks for a great video. Everything seems very clear apart from one thing for me. On some websites it is mentioned that FYA is reduced by the amount of personal use - is this correct i.e. if you're not using car for business that much, would this wipe out all the benefit of saving corporation tax via FYA or 18% winding down allowance?

[@HeelanAssociates]

WDA reduction applies that way for sole traders, no adjustment for limited company.

[@steringy]

As a director if the invoice to the client already includes mileage expenses does that preclude me from claiming business mileage back from the company when using my personal car ?

[@HeelanAssociates]

Nope it fact you’d probably want to, as you are going to be taxed on the money you receive without the ‘other side’ in your records (the cost of the mileage).

[@steringy]

To clarify my invoice shows that I’m claiming 45p per mile so assumed I would be duplicating if I claimed again ?

[@HimWhatshisname]

Thanks for the information

[@HeelanAssociates]

Glad it was useful!

[@phillipackerman2617]

Great video

[@HeelanAssociates]

Glad you enjoyed Phil!

[@madeinbanat3534]

Very good video

[@HeelanAssociates]

Glad you enjoyed!

[@jtlondon81]

Hi, if a ltd vat qualified company buys a tesla with vat included can they clain the full vat back? Thanks

[@HeelanAssociates]

Normally car vat is blocked from recovery in most situations, despite what the HmRC generic website may say! Different story with vans.

[@aizeijagbone3562]

Would a company direct still get a personal tax bill if the car is just being leased through the limited company?

[@HeelanAssociates]

Likely yes. The personal ‘benefit in kind’ is based on the car being available to be used privately. Whether lease or buy doesn’t matter.

[@aizeijagbone3562]

@@HeelanAssociates thanks for your response. What if the car is not available to be used privately and Just for business?

[@tonyfkingdom]

We bought a electricity car and write off all the cost at year 1, great. When we want to sell it, how is it accounted for?

[@HeelanAssociates]

This is where people can come a little unstuck. When you sell it, if you've written the it all off in year one, then you effectively pay tax on the price you sell it for. Example, you buy it for £50,000 year one, write it all off (let's presume it qualifies). You reduce your tax bill by £9500 (19% of £50k). You get bored, sell it next year for £35,000. You would likely have a tax CHARGE of £6,650 in that accounting year (19% of £35k). Logically if you look at it, you've got tax relief on the money it actually cost you (£15k @ 19% = £2850)

[@Steve-rc2ey]

Is it possible to buy a company EV car through a UK limited company, if the director lives outside the UK, for example in the republic of Ireland?

[@HeelanAssociates]

Legally a UK company could own it, the tax consequences depend on multiple factors. If you are funding it, you may find it's more a question of whether the funder is happy with your situation.

[@mantascypas9214]

Hi thanks for making these videos. I’m finking to open limited company next tax year but after watching one of your videos my question is it is better for me to open company now and bay big things so I could get some money back ready for next year to use. Thank you

[@HeelanAssociates]

When you say ‘money back’, how do you picture this works? Trying to understand your Q

[@mantascypas9214]

As you were saying on one of the videos that it’s best to buy things at end of the tax year. As I am trying to open the company for next year I need loads of things to get me started does it’s better to set up now and buy all the things and then claim some tax back. Or it’s better to do it all next year Thank you

[@ayres6727]

I heard that you can get Tesla for £50 if you put the car on company's name?

[@HeelanAssociates]

If only ;)

[@Upsidedownedd]

Have you got a video todo with a commercial vehicle through a ltd company or isit the same principle?

[@HeelanAssociates]

Same principle, but different result depending if its a Van or not. For example a land rover, some people would call commercial, but tax rules say car (generally). Typical white van is a different story, and often you would see those in a limited company. I use 'white van' generally though..... as Coca Cola found out recently what is a van and what is not in the tax courts can get complex! Best to check with your accountant before signing on the dotted as a company.

[@justinneal5751]

Its made complex intentionally. New job, with a a potential of 1 of 10 cars on the company car last. Im a HRT payer at 40% and im looking at a Mercedes 250 EQB. It would appear that it would only be 30 odd pounds a month according to the Internet. Nobody in payroll with confirm as everyones tax position is slightly different. A little frustrating

[@HeelanAssociates]

Yes its a rubbish system in all honestly. The minute cars are involved with payroll there will always be tax issues, as even though the revenue has real time data on your gross income, there is no way to predict 100% where your income or tax will end up :/

[@googlemusiconly1138]

What if we have a dormant company that’s been gifted a car?

[@HeelanAssociates]

What particularly about it?

[@googlemusiconly1138]

@@HeelanAssociates so can a dormant company put a gifted car in the companies name as registered keeper and remain dormant?

[@HeelanAssociates]

@@googlemusiconly1138 it maybe possible, so much depends on how the gift has been done. Difficult to answer in a comment sadly.

[@MariaMaria-xw1zp]

Hi, can help me to understand, on the FYA can i claim 100% for an electric car, paid by financing?

[@HeelanAssociates]

It depends exactly how financed. The red flags to look for when it might *not* count, are when there is mention of monthly rentals/lease and/or VAT on the monthly payments.

[@MariaMaria-xw1zp]

@@HeelanAssociates It is not rented or lease it is bought on credit for 5 years. After this period the car will be 100% owned by the business. But now I do not know if it is possible to claim 100% as mentioned for electric cars. Thank you

[@sjain1917]

There is almost no personal tax for fully electric car. BIK rate is 1%

[@HeelanAssociates]

Correct. Currently..... we say this because other 'low' (at the time) emission cars used to be like this, but they get hiked over the years.

[@Winter-db2lu]

Hi there, Just seen your video and still a little bit confused. Because I don’t want to use my personal for work, I’d rather have a pick-up or van to put all the heavy tools in the back. And I’m thinking of going self employed instead of an umbrella company. Will I be able to offset my tax with payment for that vehicle?

[@HeelanAssociates]

If you are going self employed, rather than having a limited company, this is the video for you: kzbin.info/www/bejne/hoHRq4GsgdVmoZo

[@Adam-ui3ot]

What about vans.

[@HeelanAssociates]

Video coming on that, often requested!

[@CROFTYNESS]

Do you have a video on leases and finance lease balloons?

[@HeelanAssociates]

We dont but should add to the list....

[@user-ug8wx5er1w]

Handy.

[@HeelanAssociates]

Glad it was useful!

[@karenbarker9474]

The government are so desperate to sell these EV’s I wouldn’t bother.

[@HeelanAssociates]

There is a certainly a debate on these!

[@keypoint1293]

what a complete waste of time this video is give some real examples not just a talking head rambling on stuff that are common knowledge.

[@HeelanAssociates]

The talking heads things worked for a lot of people, but sorry it’s not working for you 😄 a lot of things you might regard as common knowledge a lot of people aren’t aware of, which is why we do these videos. Was there a specific example you feel you would like to see?

[@keypoint1293]

talking ahole@@HeelanAssociates