£25,000. Buy a car or Btl
Discussion
http://www.moneysavingexpert.com/savings/discount-...
Self invested pension pot or words to that effect. There will be a link to them off that article above.
A personal pension rather than a company one.
Self invested pension pot or words to that effect. There will be a link to them off that article above.
A personal pension rather than a company one.
BTL all day long,
I'm a real petrol head but dropping 25K on a car would really grate with me.
How many cars go up in value? When was the last time you saw news headlines saying property had fallen in value?
Buy the right BTL and you will never look back.......
ETA, it's your money so spend it as you wish. We are all different so you will always get conflicting answers, bear in mind you are asking the questions of a motoring / car based forum.
Good luck, what ever you choose!
I'm a real petrol head but dropping 25K on a car would really grate with me.
How many cars go up in value? When was the last time you saw news headlines saying property had fallen in value?
Buy the right BTL and you will never look back.......
ETA, it's your money so spend it as you wish. We are all different so you will always get conflicting answers, bear in mind you are asking the questions of a motoring / car based forum.
Good luck, what ever you choose!
wilfandrowlf said:
BTL all day long,
I'm a real petrol head but dropping 25K on a car would really grate with me.
How many cars go up in value? When was the last time you saw news headlines saying property had fallen in value?
Buy the right BTL and you will never look back.......
ETA, it's your money so spend it as you wish. We are all different so you will always get conflicting answers, bear in mind you are asking the questions of a motoring / car based forum.
Good luck, what ever you choose!
If he wants an investment then a BTL might be appropriate, along with other investment strategies.I'm a real petrol head but dropping 25K on a car would really grate with me.
How many cars go up in value? When was the last time you saw news headlines saying property had fallen in value?
Buy the right BTL and you will never look back.......
ETA, it's your money so spend it as you wish. We are all different so you will always get conflicting answers, bear in mind you are asking the questions of a motoring / car based forum.
Good luck, what ever you choose!
If he wants a car then he should buy a car.
The important thing is not to confuse the two, as the issues are massively different. As has been explained at the start of the thread, the question doesn't really make sense.
sidicks said:
Please explain, I'm desperate to understand where this free money comes from!!
From the pension tax credit..Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
ringram said:
From the pension tax credit..
Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
I don't think you understand how the tax credit works!Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
ringram said:
From the pension tax credit..
Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
Are you serious?Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
ringram said:
From the pension tax credit..
Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
I'd be doing that too, if it worked like that.Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
How it actually works:
Payment into pension £8k
Government payment into pension £2k
Higher rate taxpayer tax reclaim £2k
ringram said:
From the pension tax credit..
Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
I see where you're heading but your maths may not be completely accurate.Drop £18,600 into a pension and the govt will top it up directly and with tax credit to the value of £25,000 then you spend the £6,400 on your "free" car!
A winner. The assumption is that you are a higher rate tax payer. Otherwise you will need to put £20k in the pension and buy a £5k "free" car.. as a standard rate tax payer, you still get the tax credit both ways.
Thats what Id be doing anyway..
Whats wrong with it, yes I know the credit goes partly directly to the SIPP etc, but you withhold some cash as you are not putting all of it in.
Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
ringram said:
Whats wrong with it, yes I know the credit goes partly directly to the SIPP etc, but you withhold some cash as you are not putting all of it in.
Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
Nope you lost me on this one!Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
ringram said:
Whats wrong with it, yes I know the credit goes partly directly to the SIPP etc, but you withhold some cash as you are not putting all of it in.
Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
No you don't!Then you finance the tax credit and repay it when the cheque arrives from HMRC, those numbers are correct, but as above the mechanics are that you dont get it all in your hand at once, so you have to wait for the tax credit and withhold some of the rest.
But in effect you get a min of £5k to spend on a car and still have £25k saved in your pension. Not sure whats hard to understand about that.
ringram said:
Gee well I must have been doing something wrong all these years then!
Because thats certainly how I have been running things.
Do you honestly believe there's some magic free money available from HMRC to spend on your car?Because thats certainly how I have been running things.
Yes, if you invest in a pension, there is some tax relief (meaning that your invested amount is greater than the cost to you).
You're still using your own cash to fund your car purchase, just investing less in the pension (which is topped up by tax relief!)
Edited by sidicks on Friday 2nd December 15:23
Gassing Station | Finance | Top of Page | What's New | My Stuff