Car purchase, private v company owned

[Stefan]

Hi,

I am in the purchase of buying a new car and I'm trying to evaluate whether it is more tax efficient to buy it privately and claim back mileage or to buy it through the company and claim back the VAT but have to pay tax on the "benefit in kind". Can anyone tell me if there is something I am missing that would help me answer this?

Following on from this, I was wondering if there was any way I could reclaim the VAT but avoid the tax charge (e.g. by selling the car back to myself?)?

Any advice would be greatly appreciated

Thanks,
Stefan

[King_Maker]

Each case depends on its exact circumstances.

Private ownership is usually the better option - you will need to crunch the numbers.

Reclaiming VAT on the purchase is not possible if there is private usage.

[Daniya]

As above..however as far as VAT is concerned, you can not claim back VAT on cars, however possibility on van. You can ONLY claim VAT on car if your business is in the trade of selling & buying cars.

Rana