Company Vehicle help from the Accounting Gurus Please
Discussion
Gents
I want to purchase a late used Shogun 3 door commercial,to use as my daily runner, limited company and I'm primary director.
Am I right in assuming that I won't be hit for BIK tax because it's a commercial vehicle, and if so what tax liability would I incur.
I don't want to go down the Hi-spec pick-up route, been there.
Thanks in advance for any advice
Bob
I want to purchase a late used Shogun 3 door commercial,to use as my daily runner, limited company and I'm primary director.
Am I right in assuming that I won't be hit for BIK tax because it's a commercial vehicle, and if so what tax liability would I incur.
I don't want to go down the Hi-spec pick-up route, been there.
Thanks in advance for any advice
Bob
Hilux's and split cabs used to be a nightamre and tax dictated by the local tax office approach, so if it is a shogun bought as a commercial with only front seats then it may be treated as a van as such, otherwise it's a car.
To be frank in the presnt world a low vale item like this is less hassle to have as a personal vehicle and organise mileage deductions for it via your PAYE scheme (if your company has one, if not will need one set up)
To be frank in the presnt world a low vale item like this is less hassle to have as a personal vehicle and organise mileage deductions for it via your PAYE scheme (if your company has one, if not will need one set up)
Eric Mc said:
Why do you think it's a commercial vehicle?
Eric believe that they are Light commercial vehicles according to What Van, specifically commercial has no rear seats and a bulkhead and classified as LCM when sold on this country, do you have you doubts ? am I barking up the wrong tree.
I have my own car which I prefer not to use because of the mileages involved 25-30K pa and no amount of milege payments from the company are going make up for the miles that I will rack up and the subsequent hit in residual value to my car.
The g ster,
basically as above on the mileage payments, plus I don't want have my car as company car because of BIK tax I know that I have paid out more money to purchase than the company car tax I would pay, but it's a done deal.
I have had posh pick-up in the past, but they are poor IMHO, I'd sooner run around in a van A/C, all electric & factory Sat-nav, which is what I do at present, but go to meetings in my car.
Selected to Shogun because it gives no identity to it's commercial status other than the rear side windows are blank.
Thanks guys, any further advice would be welcome
Bob
Bob
As it is a commercial, it is classed as a van. As such your BIK would be £3,000 or £3,500 if fuel is also provided. However, if it is only used for business purposes and travel to and from your place of work there is no BIK charge. Incidental private use such as going to the tip once or twice a year is ok but much more than this would incur the benefit charge.
You would need to keep evidence to prove it is business use only, such as an accurate milegae log recording all journeys. Another option would be to insure it for business use only, although this could be a problem if you made use of the incedental private use.
Hope this helps
As it is a commercial, it is classed as a van. As such your BIK would be £3,000 or £3,500 if fuel is also provided. However, if it is only used for business purposes and travel to and from your place of work there is no BIK charge. Incidental private use such as going to the tip once or twice a year is ok but much more than this would incur the benefit charge.
You would need to keep evidence to prove it is business use only, such as an accurate milegae log recording all journeys. Another option would be to insure it for business use only, although this could be a problem if you made use of the incedental private use.
Hope this helps
Gav
Did the deed today, thanks for your advice.
2006 Shogun SWB Commercial, 3.2 Litre Turbo diesel, 16K miles, Mitsubishi Warranty, full loaded, Auto/tiptronic, leather, Climate control,cruise control, electric everything & Sat-Nav, hands-free phone, £ 12,500 plus vodka and tonic.
Again thanks for your advice, I'm made up, a real deal.
Bob
Did the deed today, thanks for your advice.
2006 Shogun SWB Commercial, 3.2 Litre Turbo diesel, 16K miles, Mitsubishi Warranty, full loaded, Auto/tiptronic, leather, Climate control,cruise control, electric everything & Sat-Nav, hands-free phone, £ 12,500 plus vodka and tonic.
Again thanks for your advice, I'm made up, a real deal.
Bob
Edited by dadofbud on Saturday 31st May 17:47
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