I am appealing to fellow business owners and those who are knowledgeable in this particular area.

I have recently decided to start my own company, got the name registered and all that goes along with it. I now need to buy a car which will be used primarily for business use. I will not be drawing a salary at least for the first 4 to 6 months.

Is it better to buy a car in my personal capacity and claim the business kilometres come next year tax season or is it advisable to transfer funds from my personal account into the business account and then buy the car through the company?

Thanks.

Don't combine the two reason why come next year when u submit it's gonna be a drama that might course SARS to get into your personal stuff, to be on a safety side again make arrangement with SARS to deduct what's belongs to them after each n every project to avoid money temptations,,,,,

Last but not list hope you've registered with CSD, if u need more information feel free to ask hence you've just registered okay.

My advise is to consult with your accountant who will be doing your books as they will know the best way to go about this for your particular situation.

There are many ways, if you transfer your personal cash to the business this will then accumulate to your loan account to the business and you can claim the insurance, fuel, maintenance costs etc... as an expense like any other expense. If its in your name and you claim the kms, I think you would then need to be a registered employee of the business and follow all the rules of personal tax.

I stand to be corrected on these - like I said get professional advise from an accountant!

Best advice not to register with SARS if possible.
Fly below the radar like our minibus taxi buddies.

Unless your business going to be a multimillion Rand concern best to fly low as long as you can.

From my experience as an accountant.

I would transfer money to the business and show it as loan.

Further buy a car in the business name and claim capital allowance.

You can also claim vat for fuel and other invoice stuff you do on the car.

Loan repayment can be done to you by the company when you seem the company can now stand on its own money. You can pull the loan with interest. This will help you reduce the taxable profits.

Just a thought***

If you would like more info feel free to pm

Fuel is a zero rated supply, therefore you can't claim vat on fuel. I would buy the vehicle in my personal capacity and have a travel allowance on my irp5

Pm me ille give u some tricks u can use I'm just scared to share it cos someone from sars might close that gap.

Thank you all. I will PM soon.

On 2017-07-12 11:27:12 julian said:
Best advice not to register with SARS if possible.
Fly below the radar like our minibus taxi buddies.

Unless your business going to be a multimillion Rand concern best to fly low as long as you can.

not sure if it's a good idea was to advice him to even register for VAT lot of opportunity even to sub when your Pty got it.