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Company Car

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  • 21-04-2008 12:22pm
    #1
    Whyner
    Registered Users Posts: 1,688 ✭✭✭


    Hi,

    I've got my own limited company and am registered for VAT.

    I'm considering buying a company car/jeep.

    Has anyone done this? Any advise would be greatly appreciated. I've heard it's not worth it a lot of the time due to the benefit in kind.

    Cheers,
    Whyner...


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    #2
    AccessQuery
    Closed Accounts Posts: 81 ✭✭AccessQuery


    Whyner wrote: »
    Hi,

    I've got my own limited company and am registered for VAT.

    I'm considering buying a company car/jeep.

    Has anyone done this? Any advise would be greatly appreciated. I've heard it's not worth it a lot of the time due to the benefit in kind.

    Cheers,
    Whyner...

    Hi,
    Unless you do a lot of mileage your BIK will undo the benefit of the company car. The most tax efficient method is to purchase the car in your own name and claim travel/mileage expenses from the company.

    You also state jeep, do you mean a commercial or standard model? I believe a commercial vehicle won't attract any BIK. As you're registered for VAT if you do purchase a commercial vehicle you can claim the VAT back.

    Check with your accountant if a commercial needs any company logo etc to help avoid BIK. I don't think it does.

    Be sure to run your plans past your accountant

    Happy motoring.


  • Options
    #3
    drunkmonkey
    Registered Users Posts: 28,171 ✭✭✭✭drunkmonkey


    I'm kinda in the same boat.....but i don't want to swap my kompressor for a jeep.....i've been advised to pay myself milage...at the highest rate possible....

    could be the best way to go...talk to the accountant..


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    #4
    Whyner
    Registered Users Posts: 1,688 ✭✭✭Whyner


    I don't need a jeep. In fact I drive my Vespa to work so would be doing very little legitimate mileage. I did mention it though as I'd prefer a jeep to a commercial 3 door car.

    So if I did purchase it though the company to claim back the VAT it would then be registered to the company and I'd be liable for BIK.

    I've been in touch with my accountant, will update this once I get feedback.

    Thanks!


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