Business Car Lease - Car Insurance

[Mr_Bigglesworth]

Hi All

I'm looking into lease a car through ltd company in a lease deal that includes maintenance and road tax. I'm aware of the BIK tax as there will be a small amount of personal use.

I was wondering whether car insurance can be charged to the business? I believe I'd need to take it out in my own name via the usual routes but i will be stating on the mileage usage when signing up that 80% of the estimated mileage will be business use. Lets say the insurance costs £1000, could i reclaim the whole amount from the business as its insurance for the company car? or £800 as that's the personal usage element?

Car would be leased in company name via the company. Registered keeper would either be the leasing company or the Ltd company (I've not worked out exactly where that will stand)

Thanks for any insight forthcoming

 

[Newchodge]

Will you have exclusive use of the car, including using it for personal use?

 

[Mr_Bigglesworth]

It would be use for me as Director with the wife as named driver (as an employee). Although the insurance wouldn't care for details, my wife would only be using it if i was unwell in terms of business use. She wouldn't drive it for personal use.

 

[bovine]

If its leased through the company, insure it through the company.

 

[DWS]

As said above, Company car then Company insures it, you ‘may’ need to look at whether your wife has a BIK as well though, emphasis being on ‘may’

 

[Mr_Bigglesworth]

I think what's throwing me a bit is when you type into google 'company car insurance' you're often led down the same path as insuring yourself but selecting 'Social, commuting and for business'. Price then depends on your NCD and accident history as usual and it seems the end steps will be the car insurance being paid for in your name.

If the company then reimburses me the cost of the insurance, does that mean company car - company insurance? Or perhaps if i use the business bank account to pay for it, does that cover it?

 

[Frank the Insurance guy]

For ease and to get the lowest price:
1. Arrange Insurance in your name as a director
2. Make sure it cover Social, domestic, pleasure and the business use of the director and spouse
3. Make sure you answer the question on the owner/keeper as the Leasing Company

Insurance in the company name for 1 car can be very expensive! So insure it personally (you can do this as you are a company director).

In terms of how this is paid - check with your accountant. I suspect you can pay from the company account, but if not, you may be able to pay personally and claim it back on expenses - your accountant will be able to confirm.

 

[JEREMY HAWKE]

How will insuring it through the firm effected your NCB
Some companies will make you start from zero again so there maybe no long term tax advantage if your paying more because of no NCB .
It would depend on if your running a Kia or Bugatti Veyron thingy