Can I Sell My Car To My Company?
OnTax Accountants Dunfermline , here, roll up, roll up, whats she worth? Good little runner! Yep, we at Ontax Accountants Dunfermline have gone truly barmy on this one! Selling your car to your company? Whats it all about? In these cash strapped times, what with the taxman after your dough (should have gone to OnTax Accountants Dunfermline!) and the recession and high food prices claiming whats left, we are always up for a trick or two!
If you already have a company car and own an additional one privately, you can sell it to your company at market value. Now, market value there's an ambiguous thing! OnTax Accountants Dunfermline say that if you then use that second car for any private motoring you will have to pay Benefit In Kind tax on it, but, importantly, the company will get tax relief on the car all its associated running costs. For a detailed overview have a quick look at this short video;
Where Is The Benefit In This One?
Now before you call us a bunch of Del boy wheeler dealers, the benefit here is in the detail! Although the company now has extra running costs, i.e the car it just bought, and although you now have a BiK tax bill, the company can get full tax relief on the car and you now have the market value of the car in your bank account where the taxman can't get his mitts on it! Lovely jubbly for sure as del boy would have said to us.
Will The Taxman Actuqally Fund Your Classic? YES, YES & YES!
Watch Out For The Tax Trap!
Dont even think of selling your banger to the company for a fortune. Firstly the "market value" aspect could be challenged and secondly the BiK taxbill, being based on original list price, could mean a higher taxbill for you.
If you wish to do this correctly, do contact Ontax Accountants Dunfermline and we will ensure you get the best tax benefit!
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