Paying for the car through dividends is like buying cash. If you're a higher rate tax payer (or taking these further divs out puts you over the threshold) you will be liable for tax on the amounts at the difference between higher rate and normal rate.
And rather than trying to claim vat back on invoices your better off charging out at 45p per business mile, every business mile (until threshold then Lower rate).
My info my be out of date (best advice is that above of seeking appropriate accountant advice) but your personal BiK (benefit in kind) is the % as shown on Hmrc website for that particular car (is dependent on co2 emmissions and fuel type) multiplied by actual vehicle value new (inc tax and extras) per annum. So simply put a £40k car with a 20% liability means that you are personally liable for tax as though you hhave earnt an additional £8k per annum at whatever tax rate that puts you in (or a mix Of the two if it takes you over the threshold).
Now it doesn't stop there as the vehicle is a fixed asset and there fore depreciated over a few years, rules were 20%pa but are emmissions related now. This means that your company doesn't get the benefit of tax savings at the same rate. Service and insurance costs however are immediately deductible as an expense.
The crux of the matter means that if it's a very low emmissions car (4/4 sport?) it could well be viable especially as actual depreciation will be relatively low but you will have to run all numbers in a spreadsheet to see if it is
If I have time, I might do it just for fun
Please note, I am not an accountant nor a tax expert so please seek proper advice before doing anything!
