It’s always a good idea to register your company car, as registering it will help you pay less tax. To properly register your company car, you need to speak with an accountant about what is best for your business and then go through the process of registering the vehicle. Here are six tips that will help you get started registering a company car.
Register The Vehicle With The DMV
You’ll first have to register your company vehicle with the Department of Motor Vehicles (DMV). This is best done in person at a local DMV office.
When you register the car, be sure to bring a completed and signed Application for Title or Registration form (Form 400) from your insurance provider. You will also need your current certificate of title if it’s being transferred to another party.
If you’re just registering the vehicle though, no additional fees are required once you’ve paid all registration costs. Make sure you have proof that any applicable sales tax has been paid on your vehicle when transferring ownership between private parties into an LLC/Corporation name.
This process varies from state to state so you can get confused sometimes. Don’t be afraid to find some California DMV assistance to help you get through all this easier. It will speed up the process and you’ll be on your way cruising in a newly registered vehicle.
Gather The Documents
You’ll need tons of documents in order to register a company car. Most of them are pretty straightforward, but you’ll need some specifics depending on the state where you’re registering your vehicle. Here’s what you’ll need:
- Vehicle registration
- Proof of car insurance
- Certificate of title or Manufacturer’s Statement of Origin (MSO)
- Payment for the corresponding fees and taxes, if applicable
- Your company’s W-11 form, if registering through your employer
- The car’s logbook, if registering through an employer
- Verification of employment letter from the company that assigned you the vehicle
Fill Out All The Forms
You’ll need to be extra careful if you’re registering a company car. Make sure that you fill out all the forms correctly, as any errors or omissions may result in penalties and delays to your registration process.
The first thing is to find out whether your employer registered the vehicle for VAT purposes before it was supplied. If not, then they will have been unable to reclaim this from HMRC which means there’s a potential tax liability on them of 20% of list price plus an allowance made for any used cars already owned by the business so double-check with them!
You’ll need form V11, a.k.a. Application for Vehicle Registration Certificate. This needs completing and returned with proof of identification (eg driving license) along with payment. Then you’ll receive another letter stating that your V11 has been registered and you can collect your new number plates from the DVLA.
Find Out How Much It Costs
Do some research on the cost of registering a company car in your area. It is important to know how much it will cost you before taking on the responsibility of registering any vehicle, but they can vary significantly depending on where you live and what type of business you are doing.
Keep The Receipts Of Any Expenses
You have to keep all receipts of any expenses you make when registering a company car because the tax authority will check your claims. It is very easy to lose track if you don’t keep everything in order, but luckily there are some simple tricks that can help you get it all together again.
Save every receipt for anything that has to do with registering your company car. This includes the purchase of the vehicle itself, as well as insurance and maintenance costs later on. You can also keep receipts for petrol or electricity if you use them to go on business trips with it.
It is absolutely essential that you save all these documents meticulously in order to be able to prove what your claims are if necessary.
Keep A Copy Of All The Paperwork
Make sure to keep a copy of all the paperwork associated with registering your company car, in case you need it later. This includes documents required for registering the vehicle, details relating to the number plate, and tax disc, as well as any other documentation that pertains to registration such as insurance documents or MOT certificates.
It is also advisable to keep a copy of the paperwork for registering your company car with both companies. You never know if they will ask for additional documents that you might not have.
Registering a company vehicle is essential and you should register with the DMV first. Make sure to gather all the necessary documents and be careful when filling out all the forms! Find out how much you’ll need to pay and keep all the receipts and documents as proof of a legitimate registration. Good luck!
This article was written by Sophie Turton.
