Buying a car for your family through the company

[northernladuk]

Very intereting and detailed as always THEPUMA, thank you.

Out of interest here is a web page showing cars available by CO2 banding

Carbon Dioxide CO2 Car Emissions | UK New Car Data

Surprising to see there are actually Golfs and Audi A3's in the list so it isn't all just pokey little plastic cars.

[Kent accountant]

It's your company car, not your daughter's - there is a better solution though

Re-reading the article:

"If it is bought via the company, then in the normal course of events you will be taxed on what is called the benefit-in-kind that you are receiving."

So, it's not your daughter's car, it's yours.

I've got a better solution though:

If your daughter is an employee of your company, (make sure there is evidence that she does some form of legitimate work on a regular basis - perhaps she does your bookkeeping, writes copy for your website, does marketing, telesales etc).

Then you can pay her £136 a week tax and NI free and she can have a company car with no BIK as she earns less than £8,500 a year.

(mod snip - no advertiding Mark)

[portseven]

There was a thread in on the board sometime earlier this year about how some models of BMW (320d iirc) were quite tax efferent if bought through MyCo, but can't seem to find the thread, but this link on the net may be the gist of it.

[northernladuk]

There was a thread in on the board sometime earlier this year about how some models of BMW (320d iirc) were quite tax efferent if bought through MyCo, but can't seem to find the thread, but this link on the net may be the gist of it.

It depends on the CO2 and I have posted a link with all the cars you can get at the lower CO2 bands a few above.

[IR35 Avoider]

Can't see a BMW in the (under 100g) list, but there are three Lexi...

[THEPUMA]

Re-reading the article:

"If it is bought via the company, then in the normal course of events you will be taxed on what is called the benefit-in-kind that you are receiving."

So, it's not your daughter's car, it's yours.

I've got a better solution though:

If your daughter is an employee of your company, (make sure there is evidence that she does some form of legitimate work on a regular basis - perhaps she does your bookkeeping, writes copy for your website, does marketing, telesales etc).

Then you can pay her £136 a week tax and NI free and she can have a company car with no BIK as she earns less than £8,500 a year.

(mod snip - no advertiding Mark)

Two points re the above. The first is that in this case I think it is likely that if they spotted it, HMRC would apply the anti-avoidance legislation referred to in my previous post.

Secondly, the £8,500 includes the value of the benefit-in-kind. In this case, therefore, with a salary of £7,072 plus a BIK of £1,500, you would exceed £8,500 and the whole benefit would become taxable. Obviously, subject to my first point, you would simply reduce your salary by £2 per week in order to avoid this issue.

PUMA

[Pondlife]

Can't see a BMW in the (under 100g) list, but there are three Lexi...

The 320 efficient is 109g according to the article.