Buying a second hand 911 via my ltd company
Discussion
Hi guys. Not sure this is the correct forum to ask in, but I'm hoping there must be someone who has considered this.
I would like a 991.1s. Taking about 60k from my companies existing profits would be preferable to having to take a dividend, for taxation reasons.
I am vaguely aware of BIK, and I assume there must be other 'costs' to this.
Has anyone got any real world experience and what were your conclusions?
Cheers!
I would like a 991.1s. Taking about 60k from my companies existing profits would be preferable to having to take a dividend, for taxation reasons.
I am vaguely aware of BIK, and I assume there must be other 'costs' to this.
Has anyone got any real world experience and what were your conclusions?
Cheers!
My company financed the purchase of my cars, permitting me to get a better finance rate. I used my directors account to pay the deposit and then offset the monthly payments, that the company paid, to finance the car against the mileage charge I could charge my company. It depends on doing a reasonable mileage, which I do.
The value of the Benefit in Kind on the car you suggest appears to be 37% of the list price of the car including accessories, when new.
Whatever the value is of this 37% BIK, you will be assessed for income tax on this benefit at your highest tax rate.
If the car cost £100k new, then each year you would be asked to pay tax on £37k at your highest rate ... on top of which if the company pays for any private use fuel you will be charged the fuel scan charge ... or you can keep a record of your private mileage and pay for your own fuel in a way that HMRC can verify.
If you choose to own the car you can charge business mileage back to the company. The rate used to be 45p per mile up to 10,000 miles and the 25p beyond that, per annum. It may still be ... but if fuel is £2 per litre and the car does 6 miles per litre (27mpg), then that would leave 12p per mile to cover all other costs up to the 10,000 miles and -8p per mile above this.
All this information can be found on the internet ...
Whatever the value is of this 37% BIK, you will be assessed for income tax on this benefit at your highest tax rate.
If the car cost £100k new, then each year you would be asked to pay tax on £37k at your highest rate ... on top of which if the company pays for any private use fuel you will be charged the fuel scan charge ... or you can keep a record of your private mileage and pay for your own fuel in a way that HMRC can verify.
If you choose to own the car you can charge business mileage back to the company. The rate used to be 45p per mile up to 10,000 miles and the 25p beyond that, per annum. It may still be ... but if fuel is £2 per litre and the car does 6 miles per litre (27mpg), then that would leave 12p per mile to cover all other costs up to the 10,000 miles and -8p per mile above this.
All this information can be found on the internet ...
Caddyshack said:
Someone I know bought a 997 turbo as an asset of the company. As I understand it a company can invest money that is not needed for day to day to day spending. The person I am thinking of also has an s2000 and a Yankee muscle car in there, he is an IT contractor and record producer.
If you use it, how on earth does that get around the BIK rules?I can understand a Ltd company buying a racing car for instance as "advertising" but a road going car that's used by an employee/director?
Pflanzgarten said:
Caddyshack said:
Someone I know bought a 997 turbo as an asset of the company. As I understand it a company can invest money that is not needed for day to day to day spending. The person I am thinking of also has an s2000 and a Yankee muscle car in there, he is an IT contractor and record producer.
If you use it, how on earth does that get around the BIK rules?I can understand a Ltd company buying a racing car for instance as "advertising" but a road going car that's used by an employee/director?
Does a "pool’ car still exist?
Demhcs said:
A lot to be said for the tax benefits of a Taycan especially in that scenario. 100% writing down allowance and a 2% BIK…
170 mile realistic range tho…
It’s a minimum of 200 miles in my CT on a full charge.170 mile realistic range tho…
Buying anything other than an EV through your business is madness. It sounds like some of the above are going to attract an HMRC investigation at some point.
Edited by BorkBorkBork on Thursday 23 June 20:41
Caddyshack said:
I don’t know. I will try and find out. His Accountant was happy with it but some are more "progressive’ than others.
Does a "pool’ car still exist?
I'm sure his accountant was as ultimately it's your mate on the hook when the tax man tells him to FRO, fines, back taxes and HMRC back scuttling him for the next ever Does a "pool’ car still exist?
I guess it depends what the accountant was instructed to do.OP - talk to your account (assuming he's a good one), telling him that your strategy is not to take the piss and you do not want ram rodding by HMRC.
Mine said not to bother with normal cars. Buy it outright and charge mileage when allowed. If you don't have the cash you might be able to leverage your director's loan account. But there are some many variables.
Electric cars are very different at present.
I would trust nobody other than my accountant, or that of another accountant. When I mentioned buying a Porsche through my Ltd company my accountant suggested I FRO.
Leasing for me offers the best all round solution - I charge 100% of my costs back to a non-EU/non-UK company including fuel and the tax man is happy with that. I don't claim VAT on fuel or servicing etc and being a sole director don't get lumbered with BIK.
Have you considered leasing as opposed to owning? So many variables, probably the hardest thing currently would be finding a dealership who'd offer you one on lease...they seemed really nonplussed when I made enquiries on doing this a couple of years ago.
Leasing for me offers the best all round solution - I charge 100% of my costs back to a non-EU/non-UK company including fuel and the tax man is happy with that. I don't claim VAT on fuel or servicing etc and being a sole director don't get lumbered with BIK.
Have you considered leasing as opposed to owning? So many variables, probably the hardest thing currently would be finding a dealership who'd offer you one on lease...they seemed really nonplussed when I made enquiries on doing this a couple of years ago.
BorkBorkBork said:
Buying anything other than an EV through your business is madness.
Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting.Edited by BorkBorkBork on Thursday 23 June 20:41
85Carrera said:
BorkBorkBork said:
Buying anything other than an EV through your business is madness.
Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting.Edited by BorkBorkBork on Thursday 23 June 20:41
BorkBorkBork said:
85Carrera said:
BorkBorkBork said:
Buying anything other than an EV through your business is madness.
Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting.Edited by BorkBorkBork on Thursday 23 June 20:41
You were really looking at things like classic minis, sprites etc where the orig purchase price was in the hundreds of pounds.
Alright if that’s what you had your heart set on but a bit of a convoluted way of saving a few grand in tax.
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