Why do companies always buy new cars?
Discussion
williamp said:
I believe that the tax is still calculated on the new list price of the vehicle.
So you could save cash by buying second hand, but the tax will be the same as a new car of the same spec. And with a new car you get the warranty, agreed mileage etc etc so you "might as well" get a new car
The obvious exception is running a classic as a company car. If its old and worth less then £15k, then the BiK is very low indeed.
EG a 60s Mini Cooper. Value of, say £10k. Its tax is based on original list price and engine size. Its sub 1400cc, so 15% of the £666 list price- a mere £100. If you're a 40% tax earner, you'll pay 40% of the £100. (£40). The employer will pay 12.8% NI- just £12.80.
Evem an E-type, if worth less then £15k will give you a monthly tax bill of £21.33.
All running costs are claimable, and you can lend money to the company to buy the classic for you.
So you could save cash by buying second hand, but the tax will be the same as a new car of the same spec. And with a new car you get the warranty, agreed mileage etc etc so you "might as well" get a new car
The obvious exception is running a classic as a company car. If its old and worth less then £15k, then the BiK is very low indeed.
EG a 60s Mini Cooper. Value of, say £10k. Its tax is based on original list price and engine size. Its sub 1400cc, so 15% of the £666 list price- a mere £100. If you're a 40% tax earner, you'll pay 40% of the £100. (£40). The employer will pay 12.8% NI- just £12.80.
Evem an E-type, if worth less then £15k will give you a monthly tax bill of £21.33.
All running costs are claimable, and you can lend money to the company to buy the classic for you.
williamp said:
I believe that the tax is still calculated on the new list price of the vehicle.
So you could save cash by buying second hand, but the tax will be the same as a new car of the same spec. And with a new car you get the warranty, agreed mileage etc etc so you "might as well" get a new car
The obvious exception is running a classic as a company car. If its old and worth less then £15k, then the BiK is very low indeed.
EG a 60s Mini Cooper. Value of, say £10k. Its tax is based on original list price and engine size. Its sub 1400cc, so 15% of the £666 list price- a mere £100. If you're a 40% tax earner, you'll pay 40% of the £100. (£40). The employer will pay 12.8% NI- just £12.80.
Evem an E-type, if worth less then £15k will give you a monthly tax bill of £21.33.
All running costs are claimable, and you can lend money to the company to buy the classic for you.
How do the numbers work if 'worth' over £15k?So you could save cash by buying second hand, but the tax will be the same as a new car of the same spec. And with a new car you get the warranty, agreed mileage etc etc so you "might as well" get a new car
The obvious exception is running a classic as a company car. If its old and worth less then £15k, then the BiK is very low indeed.
EG a 60s Mini Cooper. Value of, say £10k. Its tax is based on original list price and engine size. Its sub 1400cc, so 15% of the £666 list price- a mere £100. If you're a 40% tax earner, you'll pay 40% of the £100. (£40). The employer will pay 12.8% NI- just £12.80.
Evem an E-type, if worth less then £15k will give you a monthly tax bill of £21.33.
All running costs are claimable, and you can lend money to the company to buy the classic for you.
sounds interesting
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