[Question] Buying a new vehicle in personal or company name?

[southafricanrob]

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

[dellatjie]

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.

[Dave A]

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.