Many people ask us about the tax implications of getting a new company car and whether it is better for them to buy it through the business or buy it personally.
There are many options to how you finance the purchase, whether it be cash, Hire Purchase or contract leasing. Most tax allowances are only relevant when the ownership of the vehicle passes to you or your business i.e. with a cash purchase or some finance leases. You will need to check at the time of purchasing the vehicle who will hold the log book to the car, for some finance agreements the log book is held by the finance company until the payments are cleared. With these agreements you can’t claim for the cost of the car until you have finished making the payments for the vehicle.
Click the link for a brief summary of the tax issues surrounding buying a car through your business.