Co Car Tax

[mark one]

I am about to start a business, not sure how much i'll be earning at first but i guess not much. However i need a newer car and was looking at a 3 year old TDi Golf. IfI be earning min wage or less how much tax will i be paying on the car?

Anyone know please?

 

[profitxchange]

Best bet ring the inland revenue - be prepared to give them the car details. I presume you are thinking of benefit in kind. There are a number of ways this can be tackled - do you have an accountant on board yet - if not it might be a good idea.

 

[Alpha]

It first depends on how you will be carrying out the trade (Limited company or soletrader/partnership)

As a Limited company the car will be classed as an asset of the company and it will be provided to you as a benefit therefore you will pay tax on the benefit(The amount will depend on the list price of the car and the official CO2 rating that it has). If you are the sole shareholder of the limited company this is probably not the best way to own the car (But it would need comparitive calculations to be done for an accountant to advise you).

If you trade as sole trader/partnership the car will belong to you and you will claim a proportion of the running costs against your tax (and probably also claim a proportion of the cost of purchasing the car in the form of capital allowances).

As PE says it is probably best to get an accountant to help you.