www.iva.co.uk

Hi, I am a director of a Ltd Company. It is an engineering consultancy business which requires visiting the clients sites. I have been using my own car to carry out the business.

Now we require an extra vehicle to be used by one of my employee to carry out the additional jobs.

We are considering to take out a bsiness contract hire car which will be on my Ltd company's name. With having these additional jobs, the car will pay for itself.


Is it OK for my company to get a vehicle, as I am currently on IVA for my personal debts.

Some advice please ........

The ltd company is a legal entity in its own right, however would be affected by your credit history as a director.

provided that the additional costs don't inpact your ability to fund your IVA I can't see a problem.

had you thought of asking the employee to fund the car and give him / her a car allowance? might work out better for both of you and you won't be in a long term contract incase this source of work changes.

Hi,

Thank you for the reply,

The contract hire car will be for business use only, which can be used by more than one person. i.e. if that employee is off work, or not out on jobs etc.

What I would like to know, that if the car is only on the company's name and the money comes out of the extra cash generated within the business without effecting my income. Am I still required to get permission from my IP.

My wife is the second director of my company, and she is not part of my IVA. What if she takes out the contract hire for our business, would that be an easier option.

Thank you once again!