Assets In A Company
There are situations that arise, personal use of company assets or company use of personal assets, especially in a family company for example. If this is the case you could be taking advantage of tax benefits in both scenarios!
Personal Use Of Company Assets
If you are considering buying an asset that will have business use, you should consider if you can pay for it via your company.
The savings can include Income Tax, NIC, Corporation Tax and VAT.
The assets must be bought and use primarily for business use. It will be taxable on you if there is significant personal use, or if the asset is unnecessary for your business.
If you are considering buying an asset and you think you can use it within the business as well, like a new iPad then you should be putting this cost through the business instead of paying for it personally!
Company Use Of Personal Assets
If you are using personal assets in your company then you should consider charging rent for it. The benefit of extracting funds as rent instead of taking an extra salary, is that you will avoid additional national insurance.
Again, having savings in Income Tax (PAYE), National Insurance, Corporation Tax.
If you sell the shares in the company alongside the personal asset in the future, you could be able to claim 'Business Asset Disposal Relief' which will reduce the tax on your gains to only 10%
If you need any advice in regards to tax, Saint Financial Group have a tax team who specialise within the construction industry ready to support your business.
Frequently asked questions
This article has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
PS. Whenever you are ready, here's how to grow your construction business...
1. Join our Facebook Group which built completely for businesses within the construction industry. Real people, real support. - Now also available on LinkedIn.
2. Keep up to date with Construction Insider Providing you with industry insight, tips & tricks and much more to make sure you are ahead of your competitors!
3. When you are ready, Become a Saint Financial Group client, and we will provide you with the highest quality solutions to effectively scale your construction business. Book your meeting here!
Written by the team at: