Running a classic as a company car

[Stephanie Plum]

Anyone doing it? I'm thinking of something from early 70s value around £30-£40k - accountant is frowning at me but I wonder whether anyone has real world experience of how it has impacted them both from a corp tax viewpoint and benefits in kind?

(Mods - wasn't sure whether this should be in business forum or this one - pls feel free to move if I made the wrong choice.)

[Mercky]

I've got a Triumph Herald you can have for £30,000

[Legacywr]

When I looked into it, it didn't make a lot of financial sense, can't remember why though, but there will be a guide somewhere.

[Lefty]

Makes more sense to spend a bit less, less than £15k purchase price and you pay BIK based on its new lust price.

Then of course all maintenance / resto costs are company costs...

[Stephanie Plum]

Trouble is there's not much I want that's less than £15k

[anonymous-user]

Your accountant can run the numbers but I would be fairly confident that you would be better of paying yourself the extra to run the car.

[Lefty]

Stephanie Plum said:

Trouble is there's not much I want that's less than £15k

What sort of thing are you thinking of? Remember, you could buy a total shed of a Lamborghini and restore it pre-tax

[anonymous-user]

Lefty said:

What sort of thing are you thinking of? Remember, you could buy a total shed of a Lamborghini and restore it pre-tax

The tax will be calculated on the actual value of the car after restoration.

[Stephanie Plum]

desolate said:

Your accountant can run the numbers but I would be fairly confident that you would be better of paying yourself the extra to run the car.

Hmmm. Thing is I'm wanted to buy something to reduce corp tax liability, and I know a pension is the obvious but I'm not over confident ref putting money into anything to do with the stock market at the moment.

[Lefty]

desolate said:

Lefty said:

What sort of thing are you thinking of? Remember, you could buy a total shed of a Lamborghini and restore it pre-tax

The tax will be calculated on the actual value of the car after restoration.

Oh they must have changed the rule, it always used to be on purchase price - I know a couple of people who have done it

[anonymous-user]

Stephanie Plum said:

Hmmm. Thing is I'm wanted to buy something to reduce corp tax liability, and I know a pension is the obvious but I'm not over confident ref putting money into anything to do with the stock market at the moment.

If you pay yourself a salary you will reduce your corporation tax liability.

[Lefty]

Remember, you can buy private plate for your company vehicle too - pre Corp tax

[anonymous-user]

Lefty said:

Oh they must have changed the rule, it always used to be on purchase price - I know a couple of people who have done it

Pretty sure it's always been the same. If the car goes over 15k then the tax should be calculated on the current value, not the original list price.

I think you are in 70s Barge territory so I would be looking at a nice Rover p5B. Under the value, nice to smoke around in and will work out well for taz.

[Mercky]

Ok, I can see you're a bit reluctant to part with with too much dosh at the mo, due to the economic climate and that, but me Herald is worf £28,000 all day long. Hold owt yer and!!!

[Stephanie Plum]

Mercky said:

Ok, I can see you're a bit reluctant to part with with too much dosh at the mo, due to the economic climate and that, but me Herald is worf £28,000 all day long. Hold owt yer and!!!

If I squint really hard and wear dark glasses will it look like an Alfa?

[velocemitch]

Talking of Alfa's, you would get a nice Giulia Super for under that 15k threshold, its almost a sensible company car too. Don't know what line for business you are in, but its got to be talking point when you turn up at a meeting in a 1960's Alfa Romeo.

[Mercky]

Stephanie Plum said:

Mercky said:

Ok, I can see you're a bit reluctant to part with with too much dosh at the mo, due to the economic climate and that, but me Herald is worf £28,000 all day long. Hold owt yer and!!!

If I squint really hard and wear dark glasses will it look like an Alfa?

Theres no need to squint,the Herald was styled by Giovanni Michelotti.

It looks as good as as Alfa and there are no worries about dodgy electrics, lace curtain bodywork or overpriced spare parts..

[Doofus]

When the taxation was favourable, I ran classics through my business for a few years, and even made a bit of money advising others on doing the same, and sourcing suitable cars for them.

There's significanlty less advantage to doing it these days, so I don't.

[ChasW]

I can't imagine the rules these days help. In the 80's I had a supplier who ran an Interceptor as his company car. He persuaded his bosses it was the right image and agreed that he would cover all costs over and above running the company car he would have been entitled to. From memory even in those days a lot of fleets were purchased outright and internally managed so all he had to do was agree a figure with his FD and keep his fingers crossed. He was a bit of a star so I can imagine they'd do anything to keep him. Always a thrill being taken to lunch in an Interceptor.

[Stephanie Plum]

My accountant had a suitably gloomy view of my plan