Classic car as a company car
Discussion
So, being a powerfully built company director, I did see that you can have a classic car as a company car.
If I understand correctly, if it's over 15 years old and over £15k in value, then HMRC will class the car as a classic.
So, you have a early 2000s car, that needs some significant work, what's the deal with transferring the car to the business, have the work done over a year or two, then passing back to personal ownership?
During the works, all costs would then be a business expense, hence VAT back plus the Corp tax reduction. Also, insurance, tyres, fuel etc...
So if the car is say worth £20k, and being on a minimum salary (powerfully built remember) only in the 20% band, so 37% BIK (polluting car) is £20k x 0.37 x.0.2 = £1,480 per year to stick every expense through the books? Which could easily be saved through VAT and Corp tax on running something old and interesting.
Am I missing something? Probably more around the transfer of ownership between personal and business is where it becomes a bit more of a pickle?
If I understand correctly, if it's over 15 years old and over £15k in value, then HMRC will class the car as a classic.
So, you have a early 2000s car, that needs some significant work, what's the deal with transferring the car to the business, have the work done over a year or two, then passing back to personal ownership?
During the works, all costs would then be a business expense, hence VAT back plus the Corp tax reduction. Also, insurance, tyres, fuel etc...
So if the car is say worth £20k, and being on a minimum salary (powerfully built remember) only in the 20% band, so 37% BIK (polluting car) is £20k x 0.37 x.0.2 = £1,480 per year to stick every expense through the books? Which could easily be saved through VAT and Corp tax on running something old and interesting.
Am I missing something? Probably more around the transfer of ownership between personal and business is where it becomes a bit more of a pickle?
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