My wife is a dog walker, we also board dogs at home. She is generally a little way over the income tax threshold so an outgoing of around 200 a month would be a massive bonus, giving us a free vehicle. She has a signwritten dogvan, an old doblo which has been superb for the 6 years she has been going, but want something newer.
We have a family car, a late Octavia, I have my 181 trekker and 14 motorcycles, so can argue the dogvan replacement would be used for business use only.
We were all geared up for a BRAND new Caddy maxi life, which would serve her needs but also allow us to sleep on the beach etc when the opportunity arose. We got the dealer down to 17 k new. We would put a chunk down and the load repayments over 5 years would come in under, or around, the 200 pcm.
NOW THEN!!! The company accountant from the Firm I work for is a director on many firms boards and knows his onions, he says we CANNOT offset the load repayments against tax, nor can we offset depreciation of the vehicle, as my wife is a sole trader. We can only set the entire purchase price against her annual income, if the vehicle is 20k and she earns 15k we would be minus 5k and carry that over into the following financial year. This seems very complex, we are CONSIDERING looking at LTD status, which is VERY complicated at our level, is there any other way to finance a company vehicle for around 200 a month which would keep us under the tax threshold and effectively, cost us nowt, other than the deposit????
I am NOT a numbers man, my wife is a little more clued up, where are we best heading guys??? Thanks in advance.