Company Car Advice

Asking the V-Flyer people for some different advice (No Bagging G's, Villas etc this time)

Hopefully going to be getting a Car Allowance of around £400 per month from a company, I also have my own company (which is not being used for anything at the moment) - will I get a better deal by running it through my own company as the reason I ask is a lot of the better deals seem to be for companies only and is there anything I need to consider?

The difference in price is the VAT but if I am not using the company for anything else is it not even a question?

Hoping I am making sense as a little confused myself.

I would ask for ideas on which car to get but I am really have no clue on what I want yet !

No,
First up you would be taxed on the £400 a month - so already lost some of the money.

You will be liable for benefit in kind on the car & will pay company car tax. So you may as well have a company car from your employer & not bother with an allowance.

Then you got the potential of paying Corporation Tax on the £400 you put into your company, accountancy bill, etc.

You could claim 50% of the VAT back if you was VAT registered (not on a lease, only on purchase)

You should really ask your accountant, assuming you still have one.

As for Cars - depending on the mileage you do & if you can swing it so you can charge it at work, then the Mitsubishi Outlander Phev is very economical for SUV.

low Benefit in Kind (if you did go the company car route & not a car allowance)
zero road tax
& you will get just over 20 to 25 miles per full charge (cost approx £1.20 a full charge, so about 100 miles for £6 - which is great if the company is paying you mileage as well, instead of giving you a fuel card) .. if you can charge it at work, then thats saving you some more money + a lot of service stations, ikea, etc. have free charging facilities, so if you're out & about, you can plan your breaks around charging.
I know someone who with a full tank of petrol, charges at home, charges at work & manages to do around 1000 miles before he needs to put petrol in again.

Thanks for the advice Eggtastico.

The Phev looks like an awesome bigger/family car but wow it's ugly than an A380!

Thanks for the advice Eggtastico.

The Phev looks like an awesome bigger/family car but wow it's ugly than an A380!

It is ugly & they was showcasing an updated version at the paris motorshow a few months ago.
There are a few other Phev's available now - but as a company car paying BIK, nothing comes close in tax savings.

One last question Eggtastico - In your opinion what would be the best way to pay for the Car then (The Company is quiet small so don't have a Car scheme in place) bearing in mind I will also be buying another car outright which is more family friendly, the reason I add this is that mileage on the first car may not be too high?

Think you need to work out how much you will see in your bank account of the £400 - depending on what tax bracket you are in.

Depending on the rules on what car you are allowed, I would look at the used car market.
Used to work with one chap who had a car allowance & he always drove land rovers, but would only keep them for a maximum of 1 year.
The idea behind it was if he paid £5k & sold it for £4k a year later, he has only spent £1k of his car allowance + he used to take it offroad for fun!