BIK on Classic Car

[malvolio]

I do WFH. But the car is going to have a ton of work done. So seems more tax efficient to put it via the company.

It seems the car doesn't qualify unfortunately.

It doesn't anyway.

You and YourCo are not the same (legally you and it are separate persons) and I suspect YourCo is not in the business of classic car restoration. You can't simply use one side's money to pay for the other's.

You need to understand that separation before you get into real trouble.

[mgrover]

I do WFH. But the car is going to have a ton of work done. So seems more tax efficient to put it via the company.

It seems the car doesn't qualify unfortunately.

[northernladuk]

What is the car and why do you want to put it through the company? Are you working 100% WFH? What's your reasoning for trying to put this through the company?

[northernladuk]

All three. The idea is to define a 'Classic' not just an old banger.

The last one isn't as straight forward as your list looks though. The gov pages use a different term

https://www.gov.uk/hmrc-internal-man...20ITEPA%202003.

Which says you also need to read this

https://www.gov.uk/hmrc-internal-man...anual/eim24015

Plenty of articles going through it step by step e.g.

https://www.jsca.co.uk/how-about-a-c...r-company-car/

Cars are a complex area and you've gone for an even more specialist area so I'd go get professional advice rather than ask a bunch of contractors to be honest.

[mgrover]

Hello

Am trying to work out the BIK on a classic car and just wanted to double check something.

According to HMRC's rules:

A classic car is one which:
- is at least 15 years old on 5 April 2022
- has a market value of at least £15,000
- has a market value which is higher than the original list or notional price (including accessories)

Do all three have to apply in this case? Or just one? Since my case fails on the last clause. When it was brand new it was around £50k, now it's around 15-16k.


Cheers
MG