UK buying a car through a limited companyv - help!

[shona569]

Hello, I am new to this forum and have just completed my first year of limited company accounts. I would ask my accountant these questions but I am afraid of being told off for asking too many questions (again!!)

So I need a new car, I am looking at a new Audi. I would say according to mileage I use the car around 90-95% exclusively for business mileage. I like fast cars so I am aware it would be in the 8% allowances margin most probably.

I am not VAT registered. Basically I want to lease the car through the business rather than personally so when I come to apply for a mortgage over the next yr or so, they don't see the whole payment going out of my personal account. So the business owns it not me personally. I know that I am then subject to benefit in kind & other charges but I don't understand that or how it is calculated?

So would my idea work? how much would i get charged? I think the Audi I want is around £45000. If someone could give me more information that would be great.
I saw online today that you can claim unto £25000 first yr allowances. My accountant asked me if I had a car/computer I wanted to claim, but didn't say I had this 1st yr allowance! if they had, I may have bought something sooner!!! So what happends to this allowance in year 2?

 

[Slaters Accountants]

I'd suggest you suck it up and go see your accountant, or at least a tax specialist as they could save you a lot of money and hassle. It needs to be right.

 

[Idrees]

Benefits in kind (car in your case) depends on CO2 emissions. Therefore you check the CO2 emission level and list price before you buy the car. You will be subject to two benefits, car and fuel. In your case if you only use 5% for personal use you can avoid this buy making full private use contribution.
Your company can claim capital allowance or FYA again depending on CO2 emissions.