If you’re self-employed owning a company car can be a big advantage providing both business and personal tax benefits. But it’s not always straightforward to get a company car especially if you’re a start-up or small business. Here are a few tips on how to get a company car for your business:
1. Talk to your accountant
Your accountant will be able to advise you on the best way to structure your company car ownership in order to maximise the tax benefits. They will also be able to tell you what expenses you can claim against your business so it’s worth getting professional advice before making any decisions.
2. Consider leasing
Leasing a car can be a more tax-efficient way of owning a company car as you can claim back some of the VAT on the monthly payments. It can also be less expensive than buying a car outright as you won’t have to worry about depreciation.
3. Choose the right car
The type of car you choose will affect the amount of tax you pay so it’s worth doing some research before you make a decision. If you’re looking for a tax-efficient car diesel is usually the best option.
4. Consider salary sacrifice
If you’re an employee you might be able to take advantage of salary sacrifice to get a company car. This is where you give up part of your salary in return for a company car which can be a more tax-efficient way of owning a car.
5. Get quotes from different dealers
When you’re ready to buy or lease a car it’s worth getting quotes from a few different dealers. This will help you to get the best deal on your car and could save you a lot of money.
What is the general process for getting a company car for your business?
The basic process for getting a company car for your business is to first decide which vehicle you need then talk to your accountant or business manager to see if it makes financial sense for your company and finally get insurance for the vehicle.
What are some of the factors you need to consider when choosing a company car?
Some of the factors you need to consider when choosing a company car include the type of business you have how many employees you have what the vehicle will be used for and your budget.
How do you know if a company car is right for your business?
A company car may be right for your business if you frequently travel for work have clients that you need to transport or if using your personal vehicle for business purposes is costing you money in gas and wear and tear.
What are the benefits of having a company car?
Some of the benefits of having a company car include being able to write off the vehicle on your taxes having a dedicated business vehicle that is separate from your personal vehicle and potentially saving money on car insurance.
What are the drawbacks of having a company car?
Some of the drawbacks of having a company car include the cost of the vehicle the cost of insurance and the responsibility of maintaining the vehicle.
How much does a company car typically cost?
The cost of a company car will vary depending on the make model and year of the vehicle.
How do you insure a company car?
You will need to get business car insurance for your company car.
This type of insurance is different from personal car insurance so be sure to talk to your insurance agent about what you need.
How do you maintain a company car?
You will need to maintain your company car just as you would any other vehicle.
This includes taking it in for regularly scheduled maintenance such as oil changes and tire rotations and fixing any problems that come up.
What Happens if You Get Into an Accident in a Company Car?
If you get into an accident in a company car you will be responsible for paying for any damages to the vehicle.
Your company’s insurance will cover the damages to the other vehicle and any injuries that were incurred.
Can You Use a Company Car for Personal Use?
You should check with your company’s policy on using a company car for personal use.
Some companies allow it as long as you are reimbursed for any personal miles driven while others do not allow it at all.
Do You Need a Special License to Drive a Company Car?
No you do not need a special license to drive a company car.
However you may need a special license if you are going to be driving a commercial vehicle such as a truck or van.
How Do You Register a Company Car?
You will need to register your company car in the state where your business is located.
You will need to provide the make model and year of the vehicle as well as your company’s information.
How Do You Get a License Plate for a Company Car?
You will need to get a license plate for your company car just as you would for any other vehicle.
You can usually do this at your local DMV office.
How Do You Pay for Gas for a Company Car?
You will need to pay for gas for your company car just as you would for any other vehicle.
You can either use a company credit card or reimburse your employees for any personal miles driven.
How Do You Track Mileage for a Company Car?
You will need to track mileage for your company car if you plan on writing it off on your taxes.
You can either use a mileage tracking app or keep a mileage log.