Businesses generally take a lot of money to run and even more to keep going sometimes. If you own a business, you will typically spend money on such things as a place to run your business, supplies and products for the business, and even incidentals that will make it more convenient for you as you work. One purchase that often gets overlooked for businesses is that of buying a car to use under the business name. Here are some nice advantages to doing just that.
It Will Save Wear and Tear on Your Personal Vehicle
If you have a nice car that you really like at home, then you can keep the miles on it low and keep it in a better condition by not using it to do such things as going on business trips or driving to meet clients. It will greatly extend the life of that vehicle and help to keep it looking much better
You Can Deduct the Car as a Business Expense
Sure, you will have to come up with some money out of your business funds to finance a new car purchase but it will also be written off over time as a business expense. It can also mean that you will most likely be able to get a better vehicle than if you purchased it just for personal use too.
The deduction will come in the form of what is called ‘depreciation
’ and it is done by valuing the car to last a certain amount of years and then spreading out the cost of the car over the number of years you determine it is going to last.
You Can Use it as a Tax Deduction
Having a car that you use for your business is one of the biggest tax deductions you can take year after year. These deductions will also include other vehicle related expenses such as petrol, insurance, road taxes and vehicle repairs. You can even claim such things as getting taught to drive
if you don’t know how already. These are things you cannot claim for on a personal vehicle and they can save you several hundred pounds a year.
If you buy a car for your business it can mean you will always have a reliable means of transportation standing by for you or one of your employees to go someplace to conduct business. There is never a good reason to take a chance on missing an important meeting because your car is constantly having problems, or you’re having to rely on public transportation. By buying a car through the business, you can assure yourself that you will always have a reliable means of transportation on hand.
So if you own your own business, then you need to think seriously about whether or not purchasing a vehicle for the business is right for you and your company. If you decide to go ahead and do it, not only will it give you some financial benefits, but it will also give you the peace of mind that comes with having a reliable means of transportation to conduct business.