Buying a second hand 911 via my ltd company - Page 2 - Porsche General - PistonHeads UK

Hi guys. Not sure this is the correct forum to ask in, but I'm hoping there must be someone who has considered this. I would like a 991.1s. Taking about 60k from my companies existing profits would be preferable to having to take a dividend, for taxation reasons. I am vaguely aware of BIK, and I assume there must be other 'costs' to this. Has anyone got any real world experience and what were your conclusions? Cheers!

My company financed the purchase of my cars, permitting me to get a better finance rate. I used my directors account to pay the deposit and then offset the monthly payments, that the company paid, to finance the car against the mileage charge I could charge my company. It depends on doing a reasonable mileage, which I do.

My understanding is you’ll only be able to claim 6% capital allowance on that? Plus the BIK is significant

The value of the Benefit in Kind on the car you suggest appears to be 37% of the list price of the car including accessories, when new. Whatever the value is of this 37% BIK, you will be assessed for income tax on this benefit at your highest tax rate. If the car cost £100k new, then each year you would be asked to pay tax on £37k at your highest rate ... on top of which if the company pays for any private use fuel you will be charged the fuel scan charge ... or you can keep a record of your private mileage and pay for your own fuel in a way that HMRC can verify. If you choose to own the car you can charge business mileage back to the company. The rate used to be 45p per mile up to 10,000 miles and the 25p beyond that, per annum. It may still be ... but if fuel is £2 per litre and the car does 6 miles per litre (27mpg), then that would leave 12p per mile to cover all other costs up to the 10,000 miles and -8p per mile above this. All this information can be found on the internet ...

Someone I know bought a 997 turbo as an asset of the company. As I understand it a company can invest money that is not needed for day to day to day spending. The person I am thinking of also has an s2000 and a Yankee muscle car in there, he is an IT contractor and record producer.

Caddyshack said: Someone I know bought a 997 turbo as an asset of the company. As I understand it a company can invest money that is not needed for day to day to day spending. The person I am thinking of also has an s2000 and a Yankee muscle car in there, he is an IT contractor and record producer. If you use it, how on earth does that get around the BIK rules? I can understand a Ltd company buying a racing car for instance as "advertising" but a road going car that's used by an employee/director?

A lot to be said for the tax benefits of a Taycan especially in that scenario. 100% writing down allowance and a 2% BIK… 170 mile realistic range tho…

Pflanzgarten said: Caddyshack said: Someone I know bought a 997 turbo as an asset of the company. As I understand it a company can invest money that is not needed for day to day to day spending. The person I am thinking of also has an s2000 and a Yankee muscle car in there, he is an IT contractor and record producer. If you use it, how on earth does that get around the BIK rules? I can understand a Ltd company buying a racing car for instance as "advertising" but a road going car that's used by an employee/director? I don’t know. I will try and find out. His Accountant was happy with it but some are more "progressive’ than others. Does a "pool’ car still exist?

"All this information can be found on the internet ..." It's on the internet twice now!

Demhcs said: A lot to be said for the tax benefits of a Taycan especially in that scenario. 100% writing down allowance and a 2% BIK… 170 mile realistic range tho… I got way more than than

Demhcs said: A lot to be said for the tax benefits of a Taycan especially in that scenario. 100% writing down allowance and a 2% BIK… 170 mile realistic range tho… It’s a minimum of 200 miles in my CT on a full charge. Buying anything other than an EV through your business is madness. It sounds like some of the above are going to attract an HMRC investigation at some point. Edited by BorkBorkBork on Thursday 23 June 20:41

BorkBorkBork said: Buying anything other than an EV through your business is madness It does seem that way. Looks like I'll have to go down the dividend route.

Caddyshack said: I don’t know. I will try and find out. His Accountant was happy with it but some are more "progressive’ than others. Does a "pool’ car still exist? I'm sure his accountant was as ultimately it's your mate on the hook when the tax man tells him to FRO, fines, back taxes and HMRC back scuttling him for the next ever I guess it depends what the accountant was instructed to do. OP - talk to your account (assuming he's a good one), telling him that your strategy is not to take the piss and you do not want ram rodding by HMRC. Mine said not to bother with normal cars. Buy it outright and charge mileage when allowed. If you don't have the cash you might be able to leverage your director's loan account. But there are some many variables. Electric cars are very different at present.

I would trust nobody other than my accountant, or that of another accountant. When I mentioned buying a Porsche through my Ltd company my accountant suggested I FRO. Leasing for me offers the best all round solution - I charge 100% of my costs back to a non-EU/non-UK company including fuel and the tax man is happy with that. I don't claim VAT on fuel or servicing etc and being a sole director don't get lumbered with BIK. Have you considered leasing as opposed to owning? So many variables, probably the hardest thing currently would be finding a dealership who'd offer you one on lease...they seemed really nonplussed when I made enquiries on doing this a couple of years ago.

BorkBorkBork said: Buying anything other than an EV through your business is madness. Edited by BorkBorkBork on Thursday 23 June 20:41 Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting.

85Carrera said: Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting. Ah I remember this from years ago! Doesn’t it need a small engine as well?

85Carrera said: BorkBorkBork said: Buying anything other than an EV through your business is madness. Edited by BorkBorkBork on Thursday 23 June 20:41 Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting. Something interesting that’s over 15 years old and for less than £15k? I can’t immediately think of anything that would interest me.

BorkBorkBork said: 85Carrera said: BorkBorkBork said: Buying anything other than an EV through your business is madness. Edited by BorkBorkBork on Thursday 23 June 20:41 Not necessarily. BIK for a classic (over 15 years old, less than £15k value) is based on original purchase price, so not hammered by the BIK and you get to drive something interesting. Something interesting that’s over 15 years old and for less than £15k? I can’t immediately think of anything that would interest me. Even at 15 years old it didn’t make much sense as the original purchase price still want the BIK was quite chunky. You were really looking at things like classic minis, sprites etc where the orig purchase price was in the hundreds of pounds. Alright if that’s what you had your heart set on but a bit of a convoluted way of saving a few grand in tax.

https://www.friendandgrant.co.uk/blog/fancy-a-clas... Link for information

I wonder who you end up arguing with about "value" especially when your classic is about £15k worth. Will HMRC take the word of the owner or maybe an owners club?

DKL said: I wonder who you end up arguing with about "value" especially when your classic is about £15k worth. Will HMRC take the word of the owner or maybe an owners club? Presumably you show them the purchase invoice.

Looked into this extensively myself a few years ago and it only makes sense it its fully electric.

Most YouTube car blogging types buy cars through their business. So it's a business expense and an asset of their business. As long as you have your own private vehicle and the business vehicle is only used for business so business trips or filming videos for the business then that's fine. So just take a few videos and post them on YouTube. Job done.

BorkBorkBork said: Demhcs said: A lot to be said for the tax benefits of a Taycan especially in that scenario. 100% writing down allowance and a 2% BIK… 170 mile realistic range tho… It’s a minimum of 200 miles in my CT on a full charge. Buying anything other than an EV through your business is madness. It sounds like some of the above are going to attract an HMRC investigation at some point. Edited by BorkBorkBork on Thursday 23 June 20:41 Mmm, 240 on mine .

ATM said: Most YouTube car blogging types buy cars through their business. So it's a business expense and an asset of their business. As long as you have your own private vehicle and the business vehicle is only used for business so business trips or filming videos for the business then that's fine. So just take a few videos and post them on YouTube. Job done. I suspect it might be easier for them to persuade HMRC it's a full on business necessity/asset/whatever if investigated (though even then I'm not convinced). All depends on your attitude towards risk. There are plenty of ways to avoid tax when running your own company. Plenty of ways that end up as evasion too. And HMRC aren't well known for their tenderness and empathy.

My suggestion would be a Director's Load. £50k attracts a very small amount of yearly payment, something like £200. Then you have to pay HMRC around £16k but when you pay the ltd company back your account will get the £16k back from HMRC. Surely a no brainer really. It works!

Curious, what's the 16k to HMRC for?

BertBert said: Curious, what's the 16k to HMRC for? Corporation tax?

Discombobulate said: BertBert said: Curious, what's the 16k to HMRC for? Corporation tax? ah, thought the post meant that the loan recipient had to pay it rather than the company