Vito Finance, Company or PCP

[merc85]

Be gentle as im pretty new to all this sort of stuff.

After some advice, I have a Small Motor Factor business of which i own 50% of and are Vat registered.

My wfe has a Nissan Quashqui which the PCP is coming to a end soon, We do have enough to pay the vehilce off and keep if we wish.

We are looking at a New Vito Traveliner compact as the kids are getting bigger.

What is the best way to finance the Vito? im thinking about putting it through the company and my wife paying the company the finance amount every month, which would help our vat (i think)?

Or Doing a pcp finance the usual way as a retail customer? like we have the Nissan

If we did it through the company and end up giving the Vito back at the end of the finance how would this stand with ref the vat?

As you can see i dont have much of a clue lol so advice much apreciated

 

[Red C220]

Keep it out of the company.

The only time you can reclaim 100% vat is if the vehicle is commercial (van truck etc) or is a pool car (never leaves the work premises and never used privately).

If it's none of those things then you can only reclaim 50% and have to pay BIK tax on the perceived value of the vehicle as though it were "income".

Generally a business vehicle would be taken in contract hire, which is a fixed agreement renting the car for a contracted amount of time then handed back.

I've run cars through a business (I own a VAT registered Ltd company) and there really is very little upside to it now, in fact it will generally cost you more.

 

[V12]

I'm guessing the traveliner won't qualify for 100% but the dualiner might? Gotta be worth asking that question to someone in the know.