Company Car Tax Question

[Smiler.]

I am a sole trader. My accountant has advised that the HMRC rules on assets are likely to change for the worse next year & he has advised me to sell my car.

I really don't want to

His suggestion was to get one or more valuations from dealers & then buy it from myself. The car is unlikely to be worth more than £15K, hopefully less.

He did say that even then, HMRC might not accept it.

Has anyone done this/advised similar?

[Eric Mc]

As a sole trader you need not be concerned about "company car" tax rules. These are the Benefit in Kind rules which apply to cars supplied by employers to employees or by a company to its director(s).

However, your accountant may be reffering to the way in which Capital Allowances are given on motor cars used by businesses. The Revenue does have plans to introduce less generous Capital Allowances on cars but I am not up to sped on the details yet.
I would suggest that it is premature to suggest selling the car at this stage.

Indeed, if you need to take it out of the business, you dont need to sell it at all. Just take it out personally for yourself - but I'd wait until the full details of the new rules are calculated for your situation.

[Smiler.]

Yep, that's it Eric, cheers

[CaptainSlow]

yep writing down allowances are changing. these won't be retrospective so no impact on your current car but will impact on its replacement if registered after April 1/6. will significantly hit above 160g co2 vehicles most, sub 160g will also be impacted to a lower degree.

combined with changes in leasing disallowance rules leasing will become more attractive.

Eric you may want to look into this as it will affect your clients' current vehicle orders.

Edited by CaptainSlow on Tuesday 2nd December 22:49