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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.

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