Vehicle purchase through UK LTD

[punkstar69]

I am wondering if someone of you has already purchased a company vehicle through his UK LTD.

Specifically:

- Is purchasing a left-side driven car a problem for the UK?
- Is driving the vehicle abroad an issue for the local country and the UK LTD?
- What about its plates?
- What about its transfer/payment and tax costs?
- Any experienced accountant handling such situations without being marked as "benefit of a kid" ?

 

[t2van]

If its a UK LTD. You do not buy. Lease.

The tax breaks you get over the longer term outweigh the tax claim on depreciation.

Makes no difference left or right. Left is rare to find though... You would need to import a left hand drive car..

No going abroad isn't an issue you just need insurance and other relevant things depending on the country you are going to .. however depend on what you mean by "driving abroad"

The other questions I don't really understand. Are you looking to buy a car via UK LTD and then send it aboard or what?

 

[punkstar69]

My UK LTD has established customers in Germany.
Im a German citizen / tax resident and Im staying in Germany for 11 months per year.

Im wondering if a UK LTD director can purchase a left-sided car through his UK LTD in the UK, drive back to Germany and use the car in Germany only, during workdays/hours so its not considered as a BIK (benefit in kind).

My clientbase is a German-based and my UK LTD is a remote working company, efficiently managed outside of the UK.
This car will be used for potential meetings etc. I have my own personal car in Germany by the way.

 

[t2van]

My UK LTD has established customers in Germany.
Im a German citizen / tax resident and Im staying in Germany for 11 months per year.

Im wondering if a UK LTD director can purchase a left-sided car through his UK LTD in the UK, drive back to Germany and use the car in Germany only, during workdays/hours so its not considered as a BIK (benefit in kind).

My clientbase is a German-based and my UK LTD is a remote working company, efficiently managed outside of the UK.
This car will be used for potential meetings etc. I have my own personal car in Germany by the way.

I'm no accountant but I think it would still be considered as such.

I think for what you want to do you would be better off having the UK LTD company find a car hire company in Germany and ask them to do a long term (11month) car hire.

The company pays the car hire and you can claim all of that back, you get no risk of BIK, the company can claim all fuel and milage back as its for company use abroad so you would not have to put anything into the car personal money wise (fuel, tires etc)

When you leave Germany for 1 month you return the car back to the car hire company. When you return start a new hire with a new car and go from there.

I think that's the best way to do it - at least that's how I would do it.

Given BREXIT is coming as well I'm not sure what additional liabilities you would have for keeping a UK reg car in Germany for so long either .. I doubt would be anything but you never know at this rate.

 

[joeybb]

Why dont you use your UK Ltd to buy a car in Germany and save the headache?

 

[punkstar69]

Why dont you use your UK Ltd to buy a car in Germany and save the headache?

Wont that be a complex scenario, which will need the license of the car to be formed under my LTD ? I think that i will need certificates/authorizations later in case I want to sell this car, or in case I pay a penalty in the road policy, and I want to avoid complexity.

 

[joeybb]

Wont that be a complex scenario, which will need the license of the car to be formed under my LTD ? I think that i will need certificates/authorizations later in case I want to sell this car, or in case I pay a penalty in the road policy, and I want to avoid complexity.

If you buy, maybe some extra items like a german address.
For leasing, why would there be penalties? Any foreign entity can buy a car. Only issue might be credit scoring (if it exists in germany) but that is often overcome by a bigger deposit or having a guarantor.

 

[punkstar69]

If you buy, maybe some extra items like a german address.
For leasing, why would there be penalties? Any foreign entity can buy a car. Only issue might be credit scoring (if it exists in germany) but that is often overcome by a bigger deposit or having a guarantor.

Local companies ask me for a subsidiary company located locally, in order to move on with leasing a car.

 

[joeybb]

Local companies ask me for a subsidiary company located locally, in order to move on with leasing a car.

Then they have told you the solution. Set up a german subsidiary, approx 1000 euros.
Really not sure why you are avoiding doing it personally if you are a German citizen, far less paperwork.

Could you imagine an American trying to lease a car in the US with a foreign company.

Clearly there is more information to share here

 

[t2van]

You don't need to lease it. You just need to find a hire company that will let you do either a long term hire or you can have a rolling 30 day hire. You don't need to worry about buying it or owning and you get the car in the country you need and can retain all the tax breaks for your UK LTD..

As @joeybb said the other far easier option is you purchase one in your name in Germany and just go about it that way.

You dont need to worry about the BIK then and can claim milage, fuel, servicing etc all through the company.

 

[punkstar69]

Got it and thanks for the suggestion, but forming a German company here would need self assurance and monthly costs. Or are those not mandatory for aubsidiaries?