Company EV costs increasing - sell to myself?
Discussion
I was just looking at how the BIK on my company EV is ramping up over the coming years and I'm wondering if it's about to reach a tipping point where the costs are more than the savings.
It was £42,000 when the company bought it new 4 years ago, so this year it's £1260, then £1680 in 26/27 and then £2100 in 27/28 and so on.
Against this, the company pays all the running expenses and it gets the VAT back on them. Obviously if I went back to a private car I'd be paying those expenses (including VAT) from taxed income.
I'm considering selling the car to myself, which I assume I can do at fair market value. The company initially received a 100% corporation tax write down on the purchase price and I know whatever the car sells for would be classed as taxable profit, but I'd probably just send this off to my pension so that would be tax neutral.
Am I missing anything here?
It was £42,000 when the company bought it new 4 years ago, so this year it's £1260, then £1680 in 26/27 and then £2100 in 27/28 and so on.
Against this, the company pays all the running expenses and it gets the VAT back on them. Obviously if I went back to a private car I'd be paying those expenses (including VAT) from taxed income.
I'm considering selling the car to myself, which I assume I can do at fair market value. The company initially received a 100% corporation tax write down on the purchase price and I know whatever the car sells for would be classed as taxable profit, but I'd probably just send this off to my pension so that would be tax neutral.
Am I missing anything here?
I'm just here to watch for the answer.
However i assume your mileage for business would be a consideration. If you do lots of miles and the cars in your ownership you get to bill your company for mileage.
On an older car with low running costs such as an EV I would assume theirs profit to yourself in this.
However i assume your mileage for business would be a consideration. If you do lots of miles and the cars in your ownership you get to bill your company for mileage.
On an older car with low running costs such as an EV I would assume theirs profit to yourself in this.
Gassing Station | Business | Top of Page | What's New | My Stuff