I8 ltd company purchase

[Gh76]

Been looking to buy a nice car for myself for a while and ive started to look at the i8. Not only for its looks and daily drive useability but for financial reasons.

So i have a vat registered development company and will be showing profits in the next yr returns.
If i was to buy a vat qualifying i8 ( seen some posted for 85k on auto trader) . Would i be able to reclaim 20% vat of the 85k (assume its 100% business use). Tht gets the car to 68k. Then assuming it can be offset against corporation tax, i can get another 13k off ? Makng the car an actual cost of 55k?

Yes i know whn i sell it , i would have to pay bck vat on sale of car and any CTax from sale of car.

The benefit in kind also sounds minimal.

Has anyone triedthe above and confirm tax treatment? Would be great if the tax man was paying Almost half the cost of running this car.
Thanks

[Gh76]

My argument is that I need a nice car when I'm going to look at potential plots/development opportunities. Without this the agents just don't take you serious.

The ltd company is registered at home so think that should cancel out the commuting to and from work?

I have a run around car so can argue tht the i8 is only for business use.

Far fetched? What you think?

Someone must have run the i8 through their ltd company by now?

[Gh76]

Anjum,

25%???

Are you referring to the CT Savings tht i would otherwise have had to pay?

[Gh76]

Reason to try convincing them its for business only is to get the VAT back aswell. Happy to keep a log if it means I get another 15k off the 100k asking price.

Don't mind paying the BIK but im assuming you cant claim VAT bck unless its 100% business use.

So my compariables are buy a brand new I8 for 105k. claim back the VAT and write it all off in first year against corporation tax.. gets the car to around 70k?

or I buy a second hand one (2015 ) for 85k which is VAT qualifying so still claim back VAT but cant write it all off in first year. (this would be a problem as next yr returns are showing big profits so wanted to offset it all first yr).

shame I cant find a decent accountant that can work this all out for me... and give me the best option.

[Gh76]

I guess it depends on what someone's business is.. if you plan to go to an office and park up and use it sparsly, then yes whats the point , might as well take the hit on the VAT and pay the BIK.

My working day usually consists of going to view development plots, meeting agents etc. From my experience, its a fickle business. People don't take you serious unless you look successful.

might just buy myself a yacht :-)

http://www.step.org/yacht-used-impress-customers-w...