I'm wondering if the income shi*ting rules will make owning a car via ltdco more attractive again ? Any thoughts on this idea, I'm sure there's a flaw somewhere ... ?
I bought a new car recently - already paid for by me, < 1000 miles, £11k ish list price. A quick squiz on HMRC s calculator puts the BIK charge at £3k ish. Now, if missus M is removed from the company shareholding next year, is unpaid but continues working for the company and is given use of the car as a BIK (I have another one to use) then I think that BIK could be justifed as a reasonable reflection of her contribution to the ltdco compared to mine. The tax/ni on this will be a few hundred quid I think.
So, I can extract £11k by selling the car to ltdco which isnt divis but capital expenditure.
Additionally, all MOT, tax, service, parts etc. is chargeable to the ltdco going forward, plus depreciation on the ltdco asset. Keep petrol out of the equation (just confuses matters).
Overall I may be out of pocket slightly but I've extracted a sizeable sum from the company which is off the income shi*ting radar.
I bought a new car recently - already paid for by me, < 1000 miles, £11k ish list price. A quick squiz on HMRC s calculator puts the BIK charge at £3k ish. Now, if missus M is removed from the company shareholding next year, is unpaid but continues working for the company and is given use of the car as a BIK (I have another one to use) then I think that BIK could be justifed as a reasonable reflection of her contribution to the ltdco compared to mine. The tax/ni on this will be a few hundred quid I think.
So, I can extract £11k by selling the car to ltdco which isnt divis but capital expenditure.
Additionally, all MOT, tax, service, parts etc. is chargeable to the ltdco going forward, plus depreciation on the ltdco asset. Keep petrol out of the equation (just confuses matters).
Overall I may be out of pocket slightly but I've extracted a sizeable sum from the company which is off the income shi*ting radar.
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