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Thread: Buying a new vehicle in personal or company name?

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    Buying a new vehicle in personal or company name?

    Hi,
    I have just bought a new (2nd hand) bakkie but haven't registered it yet. My accountants advised to put in CC name so can be depreciated and can claim insurance / petrol. My worry is that it may highlight is linked persons issue (if that is the proper term??).
    I have a sole prop running under the turnover tax system which works very much in my favour and another business next door that is a CC in my wife's name so I don't lose my turnover tax status.

    Am I correct that if I do register the car in the CC name then I will have to keep a log book and deal with fringe benefit tax etc that may highlight the link to the fact the the 2 businesses or in effect fairly linked?

    (The car cost R160 000 and was private sale no VAT)

    Thanks for any advice

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    Hi there,

    I am not sure about the turnover tax part, but the opposite might well be true: If you wish to register the car as your own, you will have to keep a log book in order to claim expenses for this vehicle.

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    Site Caretaker Dave A's Avatar
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    You are certainly going to have a problem if SARS detects that you are claiming expenses in the cc that were actually incurred in the production of income for the turnover tax entity.
    The trouble with opportunity is it normally comes dressed up as work.

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