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so if the car purchase amount is accepted by hmrc most likely it will be accepted by the home officehham1224 wrote:Being a chartered accountant, I wouldn't recommend to purchase car from business account for many obvious reasons.
There are two things you need to consider here;
1. From the corporation tax point of view.
2. From HO point of view [business test].
I am not a solicitor but a tax adviser, the rules of the HMRC are more or less same as HO, you may buy a motor car from a business account provided it is intended for the wholly and exclusively for the purpose of your trade. Your nature of trade is self explanatory in a given scenario. If you fall within this wholly and exclusive test then I think HO wont have any objections.
Now comes the tricky part. Purchasing a car [not Van] from your business account means that there will be a taxable benefit of using a car and you will need to pay income tax and NIC class IA and employers NIC for using the car. A small business cant get a way the business test on a car.
The second point, if you put your car in your business this means that it is vulnerable to your creditors in case your business gets busted or you wish to close the company or business plus a tax liability as well. I dont recommend this option.
I hope this helps.
cappachino wrote:so if the car purchase amount is accepted by hmrc most likely it will be accepted by the home officehham1224 wrote:Being a chartered accountant, I wouldn't recommend to purchase car from business account for many obvious reasons.
There are two things you need to consider here;
1. From the corporation tax point of view.
2. From HO point of view [business test].
I am not a solicitor but a tax adviser, the rules of the HMRC are more or less same as HO, you may buy a motor car from a business account provided it is intended for the wholly and exclusively for the purpose of your trade. Your nature of trade is self explanatory in a given scenario. If you fall within this wholly and exclusive test then I think HO wont have any objections.
Now comes the tricky part. Purchasing a car [not Van] from your business account means that there will be a taxable benefit of using a car and you will need to pay income tax and NIC class IA and employers NIC for using the car. A small business cant get a way the business test on a car.
The second point, if you put your car in your business this means that it is vulnerable to your creditors in case your business gets busted or you wish to close the company or business plus a tax liability as well. I dont recommend this option.
I hope this helps.
Hellosiavashes wrote:cappachino wrote:so if the car purchase amount is accepted by hmrc most likely it will be accepted by the home officehham1224 wrote:Being a chartered accountant, I wouldn't recommend to purchase car from business account for many obvious reasons.
There are two things you need to consider here;
1. From the corporation tax point of view.
2. From HO point of view [business test].
I am not a solicitor but a tax adviser, the rules of the HMRC are more or less same as HO, you may buy a motor car from a business account provided it is intended for the wholly and exclusively for the purpose of your trade. Your nature of trade is self explanatory in a given scenario. If you fall within this wholly and exclusive test then I think HO wont have any objections.
Now comes the tricky part. Purchasing a car [not Van] from your business account means that there will be a taxable benefit of using a car and you will need to pay income tax and NIC class IA and employers NIC for using the car. A small business cant get a way the business test on a car.
The second point, if you put your car in your business this means that it is vulnerable to your creditors in case your business gets busted or you wish to close the company or business plus a tax liability as well. I dont recommend this option.
I hope this helps.
hi
if you buy it under your name , then definitely, no you CAN NOT claim it as your investment .
,however if you buy it under company name, you can claim it as investment, plusmore you should consider company car's tax before you do this .