Contractor to Permanent - what about a company car

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VectraMan replied

17 October 2016, 09:41
It's always said that you have to be doing a lot of miles before having a company car becomes worth it, and now you'll be doing zero. Sell it to yourself, or if you don't like it sell it to someone else and buy your own. It's a bit dumb paying a BIK when you're not gaining anything.
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Scruff replied

17 October 2016, 09:28
If YourCo. owns the car and you, as the Director, use it, the BIK will prevail. Common sense should always be considered, as well as the prudence principle - if YourCo. no longer has an income stream, the car will be exhausting (sorry) YourCo.'s capital. Sell the car & buy one in your own name.
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sal replied

17 October 2016, 08:28
Originally posted by malvolio View Post

Several but the quick answer is yes.

WHS
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malvolio replied

16 October 2016, 14:04
Originally posted by prr77 View Post

I’m considering moving from contracting back to permanent for various reasons.

There a few complications I'm looking at but the one I’m having trouble finding any answer is regarding what happens with a company car. My ltd company has a car that I use privately so I have a BIK liability, but if I became a permanent employee for another company then what should happen to the company car. I’m planning to keep the company active for at least next year just in case things don’t work out, so will be completing accounts accordingly.

Can the company continue to have a company car and if so can I continue to use it (with a BIK)?

Any ideas?

Several but the quick answer is yes.
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prr77 started a topic Contractor to Permanent - what about a company car

16 October 2016, 13:49
Contractor to Permanent - what about a company car

I’m considering moving from contracting back to permanent for various reasons.

There are a few complications that I'm looking at but the main one I’m having trouble finding any answer is regarding what happens with a company car. My ltd company has a car that I use privately so I have a BIK liability, but if I became a permanent employee for another company then what should happen to the company car. I’m planning to keep the company active for at least next year just in case things don’t work out, so will be completing accounts accordingly.

Can the company continue to have a company car and if so can I continue to use it (with a BIK)?

Any ideas?

Last edited by prr77; 16 October 2016, 17:57.
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