Company or Personal Car?

[northernsole]

Can anyone advise me about a company cars. I own my personal car outright and bought it a year or so ago, in between this period I have changed careers and gone from being an office manager to running my own shoe shop. I am registered as self employed and paY my petrol expenses and wear and tear cost for my car through the business. It's now come to a point where I want to buy a new car ( i will be putting my old car in as part exchange and will have a balance of roughly �5000 to put on finance). Would I be better off finacing the balance personally or through the business, I've looked everywhere for some advice but there's nothing on self-employed vehicles on hmrc.co.uk so if anybody knows a useful website I would most grateful. Thanks ( sorry it's a bit long-winded.)

[Harley]

If you are self employed it really makes no difference.Your accountant will calculate the ratio of business use to private use and you will claim the expense against your profits for the year.

If the business pays all the costs then your personal use will be disallowed as a business expense and added back to profit thus increasing the tax liabiity

As a self employed person you pay income tax on your profit not on what you draw down as wages