BIK on Classic Car

[eek]

Not really. There are certain carry ons HMRC will see as aggressive tax avoidance i.e. you've gone one step too far and this would be one of them. You've entered in to a tax situation that is not driven by the business and is only there to avoid tax. A company car you don't need that then suddenly needs 1000's of pounds spending on it won't sit well with HMRC.

You mean I need to rethink the conversion of the company E-type to electric?

[mgrover]

In the grand scheme this post has turned purely hypothetical since the the car doesn't apply for classic status.

That alone would make the BIK way more than I could save in terms of VAT/Personal tax/Corp tax.

Maybe it if wasn't a gas guzzling monster it would have been okay.

Probably why so many directors have been buying Teslas recently

[malvolio]

In the grand scheme this post has turned purely hypothetical since the the car doesn't apply for classic status.

That alone would make the BIK way more than I could save in terms of VAT/Personal tax/Corp tax.

Maybe it if wasn't a gas guzzling monster it would have been okay.

Probably why so many directors have been buying Teslas recently

No, that's because pure electrics attract a way better tax treatment to encourage people to buy them, so they make economic sense.

[WTFH]

Was the plan involving a non-runner (or one requiring a lot of rebuilding), sell it to the company, get the company to pay for all the repairs, maybe do an engine rebuild while there, charge the company for your time doing the work on it at weekends (see your previous thread about doing overtime), then sell it back to yourself at the same price as you paid for it, or maybe at the same price + cost of materials spent, or at a depreciated value since most cars depreciate?

If so, I’ve got an old Alfa badge, might be off a 1969 Spider. I could sell it to MyCo for £10, then do some “minor repairs” and have a £15k car in a few months…

[northernladuk]

No, that's because pure electrics attract a way better tax treatment to encourage people to buy them, so they make economic sense.

Bearing in mind the high cost of the actual car it doesn't to me but if you really want a Tesla or similar then it's a the perfect opportunity.

[PerfectStorm]

Remember all those MPs that got in trouble for raising expenses that had absolutely nothing to do with their business?

[SueEllen]

Remember all those MPs that got in trouble for raising expenses that had absolutely nothing to do with their business?

Duck house?

Moat?

Seems I forgot about the toaster -

https://www.shropshirestar.com/news/...penses-claims/

[mgrover]

Was the plan involving a non-runner (or one requiring a lot of rebuilding), sell it to the company, get the company to pay for all the repairs, maybe do an engine rebuild while there, charge the company for your time doing the work on it at weekends (see your previous thread about doing overtime), then sell it back to yourself at the same price as you paid for it, or maybe at the same price + cost of materials spent, or at a depreciated value since most cars depreciate?

If so, I’ve got an old Alfa badge, might be off a 1969 Spider. I could sell it to MyCo for £10, then do some “minor repairs” and have a £15k car in a few months…

I owned a company car before that I did the work on and never thought to charge the company for my time, but would that really make any difference? Like I'd have to set myself up as a garage, then maintain that business, all its paperwork etc etc and I'd still have to pay the corp tax etc etc?

Nah engines solid thankfully, it's just some rust work, but unfortunately due to the lack of supply in terms of decent body shops the prices are going through the roof atm.

But this car is appreciating, I bought it for 15ish, after the rust work it'll probably be worth 25k. The plan was to just pay the BIK forever. I get that obviously becomes a problem if i do ever want to buy it back given it'll be worth a nice chunk of change.

[mgrover]

No, that's because pure electrics attract a way better tax treatment to encourage people to buy them, so they make economic sense.

Well am still going to pay the tax on this car either way so I don't really see the problem?

[northernladuk]

I owned a company car before that I did the work on and never thought to charge the company for my time,

You are kidding right? Sums this whole post up that does.