would you swap your 430 for a bmw i8?
Discussion
I'm not an accountant, but there is more to it than that. I own the company and the company will also get corporation tax relief on the running costs, including the depreciation. A 40 percent tax payer has to be paid £166k to net down to £100k to go and buy the car. They can then only claim mileage at 45p for the first 10k miles and 25p thereafter and have got to suffer fuel, maintenance, insurance and depreciation with tax paid money. Plenty here will explain it better than me, but hopefully you get the idea! 
kryten22uk said:
slippery said:
This was my motivation. A fantastic car that doesn't murder me from a tax perspective. 
So, if I understand it correctly, if you own a company and pay your self say £100k to buy a car, then you pay 40% tax on that £100k. Whereas if you let the company buy the car, then you pay BIK instead. The BIK in the following 3 years are 5%, 9%, 11%, totalling 25% of the £100k. So you save 15% tax. Is that right, or is there more to BIK than that?
Huge differance, I'm tempted myself I have to say.
bertie said:
kryten22uk said:
slippery said:
This was my motivation. A fantastic car that doesn't murder me from a tax perspective.
So, if I understand it correctly, if you own a company and pay your self say £100k to buy a car, then you pay 40% tax on that £100k. Whereas if you let the company buy the car, then you pay BIK instead. The BIK in the following 3 years are 5%, 9%, 11%, totalling 25% of the £100k. So you save 15% tax. Is that right, or is there more to BIK than that?
Huge differance, I'm tempted myself I have to say.
slippery said:
I wanted a used 599 or 12C as a toy, but was struggling to come to terms with the level of pre-tax money it was going to cost me (well over £200k in the case of the McClaren). I know this is no McClaren/Ferrari etc, but it'll do for now and I plan to use it as a daily to make the most of it.
The lease deals look even more compelling - been quoted less than £1300+VAT incl servicing on 3+36 deal. No worry about the value tanking when if they bring out an i9 or M version. This with near supercar performance for Mondeo BIK payments - no brainer 
purpleperil said:
The lease deals look even more compelling - been quoted less than £1300+VAT incl servicing on 3+36 deal. No worry about the value tanking when if they bring out an i9 or M version. This with near supercar performance for Mondeo BIK payments - no brainer
Indeed, I was looking at those deals too. Albeit, you should look harder, as a 3+36 deal can be had for £1000, and 6+35 for 950ish. Can only claim back half of the VAT though (as you'd probably struggle to argue an i8 was wholly and exclusively used for business!).I considered leasing, but I'm able to write the entire purchase price off against CT by paying cash, so decided to do that. Either way, there's a lot going for it. I would say though, that although it looks like a supercar, it drives more like a sporty GT IMHO, but that suits me to be honest.
slippery said:
Well I didn't know low emission cars qualified for CA.Every day is a school day!
tobybmw535i said:
We have been told November 8th delivery date cannot wait!
What did they tell you initially? I ordered Thursday afternoon and was told Spring 2015, hopefully March, but that they would let me have a firmer idea in a couple of days. I was hoping I'd get a call today, but I didn't, so perhaps I'll find out more tomorrow. slippery said:
tobybmw535i said:
We have been told November 8th delivery date cannot wait!
What did they tell you initially? I ordered Thursday afternoon and was told Spring 2015, hopefully March, but that they would let me have a firmer idea in a couple of days. I was hoping I'd get a call today, but I didn't, so perhaps I'll find out more tomorrow. kryten22uk said:
slippery said:
This was my motivation. A fantastic car that doesn't murder me from a tax perspective.
So, if I understand it correctly, if you own a company and pay your self say £100k to buy a car, then you pay 40% tax on that £100k. Whereas if you let the company buy the car, then you pay BIK instead. The BIK in the following 3 years are 5%, 9%, 11%, totalling 25% of the £100k. So you save 15% tax. Is that right, or is there more to BIK than that?
So just trying to suss out how this would work for owner of ltd company. Normally the company would buy the car, then after say 3 years what ever the car is sold for , goes back into the books and you pay tax on it. Is it the last point where the CA advantage of I8 comes in, as whole car is written off against tax ? I assume BIK still stands though ?
Edited by T4NG0 on Tuesday 9th September 04:58
No, what goes back on the books then has to show as a taxable profit, so you only get CT relief on the depreciation in the end. The point is, it's still way better than having to pay for depreciation and all other running costs with tax paid money, which pretty much doubles them and any other car that looks and goes like an i8 at similar money costs you 35% BIK if you run it as a company car. It's obviously much cheaper to fuel too which helps and the 5 year service deal for £1k is good.
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