The case for your company buying a "QUALEC"?

[tim123]

None of which you'd be seen dead in ?

Why not?

do you have small willy?

tim

[dude69]

Not according to this HMRC page.. It says 2008/09 is still 120g for a car to qualify as a QUALEC..

Check the Budget it's in there. Search for 110 in the pdf.

Btw I think that page might be referring to BIK, whereas the OP is asking about the 100% first year capital write-down, which is definitely being cut to 110g.

[KevinS]

Check the Budget it's in there. Search for 110 in the pdf.

Btw I think that page might be referring to BIK, whereas the OP is asking about the 100% first year capital write-down, which is definitely being cut to 110g.

Indeed it is.. Chapter 6, page 97..

[Fred Bloggs]

Thanks, the devil is very definitely in the detail! I'd be happy with a Mini Diesel as a commuter car, under 110 CO2. That would be a BIK of 13% of around £16k. 16/100 x 13 = 2.08k, x 0.2 = £416 income tax. And around half that much again as E'ers NI contribution. So in round figures, £600 tax. £50 a month. Sell my existing car for £10k and get ~£40 a month interest on the money!

Purchasing a QUALEC each year would offset my corporation tax liability. What I'm not sure of is the tax treatment of the residual value of the QUALEC that you part-exchanged each year when you bought the new one, as it would be a company asset.

Maybe a partial VAT refund too. (On fixed rate VAT but the asset purchased would still qualify for partial VAT refund?).

[oracleslave]

I'd be happy with a Mini Diesel as a commuter car

Was just going through the list and had the same thought.

[Fred Bloggs]

Was just going through the list and had the same thought.

[NickNick]

I'm in a diesel BMW at the moment which comes so close at 120g/km. Would recommend that over the Mini any time. Of course that'a s moot point.

[gadgetman]

I'm not sure if I've grasped this completely.

In simple terms, for a qualifying car, would this scheme mean at the end of my company year, the complete value of the car would be offset against my profit and therefore reduce my corporation tax by 16k?

Does the write down mean that the car would have no value, in terms of my accounts, for the following company year?

Presumably the BIK figures quoted are for 20% and these would double if you are liable for 40% tax?

[oracleslave]

I'm in a diesel BMW at the moment

Does that make typing and driving difficult or do other road users make allowances as you're a beemer driver?

[dude69]

I'm not sure if I've grasped this completely.

In simple terms, for a qualifying car, would this scheme mean at the end of my company year, the complete value of the car would be offset against my profit and therefore reduce my corporation tax by 16k?

Does the write down mean that the car would have no value, in terms of my accounts, for the following company year?

Presumably the BIK figures quoted are for 20% and these would double if you are liable for 40% tax?

The profits would be reduced by the cost of the car. So if the car costs £16k, you would save £3.2k in CT. Subsequent years, zero.

If you get in before April 5th (1st?), there are quite a few more cars eligible, namely those between 111g and 120g of CO2.