Hi,
I am a working director of a company and recently purchased a car on personal loan (not via Company). Initially, I was going to transfer the registration of the vehicle to company, and make company paying for the loan repayment, and claim tax deduction for depreciation, interest on loan, and also running costs etc. Car is used 100% for business purpose. However, the process of transferring the registration to a company is more complex than I thought.
Is there a way for me to leave the car registration under my personal name, but loan repayments and running costs are paid by the company without incurring FBT or any other tax liabilities?
Is it simpler to leave the car under my name and get car allowance paid with my wages so that it can offset with tax deductions (depreciation+interest on loan+running costs etc) when doing my personal income tax return? However, I assume there will be a loss in GST that otherwise could have be claimed under business.
Will there be a benefit in signing up for a novated lease as an employee of the company?
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