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Buying Decisions

Legacy_user
Legacy_user Posts: 0 Newbie
edited 13 May 2015 at 2:52PM in Motoring
Won't be asking for any help on here again, considering I've been personally attacked.
«13

Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Ask your accountant.
  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 13 May 2015 at 2:53PM
    Won't be asking for any help on here again, considering I've been personally attacked.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • forgotmyname
    forgotmyname Posts: 32,946 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Your still going to be losing money on depreciation. Your business account will be paying for it though.

    Other than potential tax gains how will it differ?
    Censorship Reigns Supreme in Troll City...

  • westy22
    westy22 Posts: 1,105 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The Benefit in Kind (BIK) value of the cars you lease through the company will be added to your personal tax liability (based on list price and CO2 emissions). The BIK value will also be added to your salary which may push you into a higher overall tax bracket than currently.

    I very much doubt that it will be cheaper overall to provide company cars unless you are looking to have very low emission vehicles (less than 100gm CO2).

    If you can sell your 2008 and a 2011 private cars for £30,000 or so then they must be pretty high cost / spec models. To provide a similar standard as a company car is likely to be cost prohibitive.
    Old dog but always delighted to learn new tricks!
  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 13 May 2015 at 2:53PM
    Won't be asking for any help on here again, considering I've been personally attacked.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • westy22
    westy22 Posts: 1,105 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Here is a link to a good site which will do the calculations for you and also estimate your increased tax liability.

    Beware, you will be shocked at the effect a company car has on finances :eek:

    http://comcar.co.uk/newcar/companycar/taxcalc/g1select.cfm
    Old dog but always delighted to learn new tricks!
  • jimjames
    jimjames Posts: 18,796 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Your still going to be losing money on depreciation. Your business account will be paying for it though.

    Other than potential tax gains how will it differ?

    If you're the only owners of the business then business paying for it is hitting you in the pocket by reducing your profits.

    Any savings on the cars will allow you to increase your dividends or retain profit in the business that could improve your deposit.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • westy22
    westy22 Posts: 1,105 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 22 January 2015 at 1:54PM
    As a separate, but relevant issue, your accountant should probably be advising you to take about £8,000 pa salary each. This qualifies you for automatic NI credits but without actually having to pay any NI or income tax. (slightly below NI threshold and well within annual personal allowance). Then add up to about £25,000 pa each in dividends which will not be taxed until the basic rate threshold.

    This provides up to £33,000 per annum each with no NI or income tax provided of course that you have no other taxed sources of income.
    Old dog but always delighted to learn new tricks!
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    jimjames wrote: »
    If you're the only owners of the business then business paying for it is hitting you in the pocket by reducing your profits.
    Which means less corporation tax to pay.
  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 13 May 2015 at 2:53PM
    Won't be asking for any help on here again, considering I've been personally attacked.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
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