Originally posted by MPwannadecentincome
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Previously on "Company cars - seems to be a new rule in HMRC 480 since 2013"
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Originally posted by SueEllen View PostThere are a couple of posters in the past who have had company cars through their companies. Their roles involved using the car during the day to get to many different sites including in middle of fields.
In addition instead of asking loads of questions on here they bothered to go and talk to an accountant who they paid.
My only intention on posting here was to see if anyone was re-imbursing private mileage to reduce BIK.
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Originally posted by MPwannadecentincome View PostWell I posted this to tap into the experience of people who might have gone down this path and it seems that nobody has that wants to talk about it.
In addition instead of asking loads of questions on here they bothered to go and talk to an accountant who they paid.
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Originally posted by northernladuk View PostI am sure it won't when HMRC come to inspect.
Looks like you have this in your head and despite all the advice you still insist on trying to rob your company blind. This isn't the advice we give on here so if you are so sure about it just go and do it.
Besides, lots of companies use glasses guide trade price for disposal - I have seen it happen in companies I have worked for so I don't think HMRC will be interested really. Even if I didn't buy the vehicle myself from the Ltd co if I sell to a dealer they will not pay more than glasses trade price.
So the company is not going to be robbed in fact by not getting a high depreciation car I am balancing mine and the company's interests.
IMHO.
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Originally posted by MPwannadecentincome View Postsure glasses guide trade price will do fine
Looks like you have this in your head and despite all the advice you still insist on trying to rob your company blind. This isn't the advice we give on here so if you are so sure about it just go and do it.
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Originally posted by Sockpuppet View PostYou mean at market value else it would also attract a BIK charge
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Originally posted by Boo View PostIt doesn't say that ?
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Originally posted by MPwannadecentincome View PostThat's ok I can sell the car really cheap from company to myself at disposal time ;-)
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Originally posted by Sockpuppet View PostBuying an old car to minimise depreciation in your case won't be helpful. You need a car with high depreciation to offset against the corporation tax to make having the car a benefit to yourself.
Otherwise you'll end up paying BIK on a high cost (new list price) but the actual cash money you'll save will be minimal as the majority of the car is already depreciated.
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Buying an old car to minimise depreciation in your case won't be helpful. You need a car with high depreciation to offset against the corporation tax to make having the car a benefit to yourself.
Otherwise you'll end up paying BIK on a high cost (new list price) but the actual cash money you'll save will be minimal as the majority of the car is already depreciated.
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Originally posted by Sockpuppet View PostThe only way to work out if the car is good value is to work out if the BIK charge is more or less than the car would cost you per year to run including depreciation etc. What care were you thinking, what's it going to cost?
Historically with private cars I have never bought from new, at best 1 year old but sometimes 3 years old and kept the car for at least 6 to 10 years which for me has minimised depreciation which is often the single biggest cost as I have bought cars for cash. I can't do that now as I have large debts so finance costs have to be counted as well as servicing, repairs, maintenance, car tax, MOT.
You are right I have to do the calculations for my situation to compare against predicted overall BIK - I will not know the true balance of private vs company mileage until the end of the year. So what car I buy will be a complex determination of all the factors and costs involved ;-)
The point of this thread actually was to find out if anyone was already following the new rule and re-imbursing the LtdCo for private use and how they were calculating how much to re-imburse. Seems that nobody is doing it, so I will take advice from an accountant on this question when I have appointed one.
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Originally posted by MPwannadecentincome View PostIf I re-imburse the company for private use of the car of course I am using money that has been taxed but if I put £2000 back into the company on £2000 worth of BIK I am saving Employer's NI (£276) plus Employee's NI (£40) plus 40% tax (£800) which totals £1116. If I try to take this out of the company again as divis at higher rate I pay effectively £800 tax thus saving £316.
Is that correct?
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Originally posted by northernladuk View PostRemember at the end of the day it is only 20% discounted. Comes out of your pocket at the end.
Just to bring home the point today I forked out £450 for new front brake disc/pads, renew brake fluid and one rear light for the wife's car - this was money that was net of HRT.
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Originally posted by legal View PostSo the company pays for maintenance? Is this correct?
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