D4 commercial or leasing, what options for a Ltd Company?
Can anyone expain how to arrive at a set of figures that would explain the best way of funding a D4 through a one man Ltd company?
I know the commercial option provides a van BIK tax charge of personal rate x £3600, the van can be fully expensed including fuel with a corp tax expenses reduction of 20% including capital expenditure and VAT and that the 24 month commuting rule doesn't apply.
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Leasing at probably around £400-500 month leasing charge, but how is fuel expensed and is there a BIK on this, VAT can be reclaimed, does the 24 month rule apply?
Can the commercial D4 be purchased with HSE spec? i.e. air suspension, nice gadgets etc?
Sorry to be cheeky, but can I also piggy-back onto this enquiry, as I have a very similar query.
Could any replies also describe pros/cons/benefits of personal leasehire vs business leasehire.
Thank you!
30th Nov 2012 3:10 pm
SHARKYSHARKS
Member Since: 20 Dec 2008
Location: Saddleworth Oldham
Posts: 1954
Speak to Nene Overland land Rover ,
A guy i know specked a commercial HSE from them it came as a normal HSE and they then removed all the seats and reclassified it as a commercial where upon he could reclaim all the VAT back MY18 D5 HSE LUX😎
MY12 Freelander SD4 HSE
44 Tonne 12 Litre 6x2 Scania T cab (Current)
Freelander 1 (Wrote off 😫)
Ex D1
Ex D2 GS
Ex V8 D2 GS
Ex D3 S
Ex D4 GS
Club skip ya lockers !!!
Club BAS remote heater !!
Club Duratrac
Club Phillips DRL
Club Prospeed Rack Mk 1
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30th Nov 2012 4:50 pm
LiftedDisco
Member Since: 10 Jun 2010
Location: Towcester
Posts: 1002
Blimey.. loads of scope here for misunderstanding and conflicting information!
Let's start with the Nene Conversions - there is no easy way to reclassify the vehicle once it has left the factory and my understanding is that you will always end up paying the car rated Vehicle Excise Duty whereas the tax disc for my genuine commercial is stupidly low as it's treated as a commercial vehicle with a Euro V engine.
The 24 month rule relates to contractors - I am not sure whether they differentiate between travel in a 'van' and travel in a car. I suspect what you use doesn't make a blind bit of difference given you can use public transport, fly etc etc in their defined options..
And so to BIK... For the commercial, the current rates are £3,000 for the use of the vehicle and then a further £550 per year for fuel benefit. If you were to opt for the HSE as a car, you will pay BIK at the HMRC stated rate and the same again for any fuel benefit - this roughly translates as 'shed loads of money' whereas the tax bill on the commercial is around £118 per month all in.
With the commercial option, you can reclaim 100% of the VAT - you can only take 50% of the VAT if you are leasing a car. Not entirely sure where you get your lease costs from as I think my commercial is around £550 per month (albeit on 30,000 a year).
In terms of speccing the vehicle - you can add almost anything and I know a few on here who have done just that. Ultimately, there are certain things that will appeal and the 'base level' commercial really aint too shabby.
By the way... All D4's (commercial or HSE) come with air suspension...
D4 Commercial - 65 Plate, 2016MY
D5 Commercial - Handed back when I left that job…
D4 Commercial (2014MY) - gone
D4 Commercial SDV6 - Baltic Blue (also gone)
D1 300TDi... 2" lift, HD bumpers (both), detachable tow hitch, 9,500lb winch, 235/85/16 muds and plenty of other toys (gone to make way for the next toy...)
Smiles per Mile - Tornado Motorsports caged Evo 3... 100" Defender look-alike, with Range Rover running gear - all fully IVA'd and registered!
30th Nov 2012 5:17 pm
SHARKYSHARKS
Member Since: 20 Dec 2008
Location: Saddleworth Oldham
Posts: 1954
DB have a look at Nene Overlands web site it states they can convert if required and dont take anyones word until you speak to them who do the work im sure they can give you any advice you require.
I have seen my mates D4 before and after, it was a good job
They also have some commercials in stock including a FFRR commercial MY18 D5 HSE LUX😎
MY12 Freelander SD4 HSE
44 Tonne 12 Litre 6x2 Scania T cab (Current)
Freelander 1 (Wrote off 😫)
Ex D1
Ex D2 GS
Ex V8 D2 GS
Ex D3 S
Ex D4 GS
Club skip ya lockers !!!
Club BAS remote heater !!
Club Duratrac
Club Phillips DRL
Club Prospeed Rack Mk 1
Club Prospeed Rack Mk 2
Club Sankey
Club RLD spare wheel protector
30th Nov 2012 5:47 pm
character
Member Since: 31 Dec 2007
Location: wiltshire
Posts: 5781
another option would be to buy the vehicle (with or without personal finance) in your own name and then "charge" the limited company for the use of it, that way you'll avoid the BIK and can also charge the business a premium over and above the actual cost along with 0.45ppm for X amount of miles followed by a reducing rate thereafter (not sure what level it is) for the fuel and servicing costs.
another option would be to buy the vehicle (with or without personal finance) in your own name and then "charge" the limited company for the use of it, that way you'll avoid the BIK and can also charge the business a premium over and above the actual cost along with 0.45ppm for X amount of miles followed by a reducing rate thereafter (not sure what level it is) for the fuel and servicing costs.
That way you can have what yer want.
BTW have a word with your company accountant
This is what I currently do as it was the best way forward as advised by my accountant based on the fact that:
1. I already owned my car
2. I did not need a commercial vehicle - ie I wanted a 'car'.
The benefits can apparently swing around though if you:
1. Want to own a 'relatively new/expensive' commercial vehicle.
2. Buy a VAT qualifying vehicle (assuming you are VAT registered).
Principally due to the VAT and BIK tax benefits of a commercial VAT qualified vehicle over a car. I think there must be a tipping point in there somewhere, but have never been able to work out where it is!
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