buying as a person rather than a company

[maximumpanda]

Am I missing something?

I'm a recent transplant to the UK and buying my first Porsche turbo s (delivery in march!). The sales rep kept suggesting or mistakenly assuming I was buying the car through my company rather than a personal purchase.

I've seen a couple of people suggest that they have bought theirs through a shell LLC and I was wondering what / if any benefit there was to doing so in the UK.

Thank!

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[Deleted member 7514]

The benefit of buying through a company is the corporation tax deduction.

I don’t see the benefit of buying when you don’t have a legit company only more issues!

 

[Fish Fingers]

My sales rep also assumed I was buying through a company.
I asked why and she said that's how the vast majority of Taycans are bought.

I looked at both options (as I am a Company Director) and decided that I still preferred to buy and own it personally.

Pros and cons for both options - but depends on individual circumstances and preferences.

 

[W1NGE]

Am I missing something?

I'm a recent transplant to the UK and buying my first Porsche turbo s (delivery in march!). The sales rep kept suggesting or mistakenly assuming I was buying the car through my company rather than a personal purchase.

I've seen a couple of people suggest that they have bought theirs through a shell LLC and I was wondering what / if any benefit there was to doing so in the UK.

Thank!

Ask your Accountant and read HMRC guidance notes on EV allowances, BIKs and capital write offs.

Personally I go the private route rather than through my companies.

 

[Bobzilla]

If you have a company that actually does any business and has a source of taxable income then running a Taycan as a company car can be very beneficial from a tax perspective, if you compare to salary. The cost of buying and running (ie salary foregone) is significantly more than the BIK from it (ie salary imputed). I haven't run the numbers for dividends because I'm a standard PAYE employee without my own company, but I could do that quite easily.

If you don't have your own company with its own source of income, it won't work because the money that would go in would be post tax money, so you'd just be increasing your tax charge.

The only thing to watch is minimum cash wage rules which still apply to directors who actually work for the company (I believe) rather than just directors who only sit on board meetings.

 

[Deleted member 7514]

If you have a company that actually does any business and has a source of taxable income then running a Taycan as a company car can be very beneficial from a tax perspective, if you compare to salary. The cost of buying and running (ie salary foregone) is significantly more than the BIK from it (ie salary imputed). I haven't run the numbers for dividends because I'm a standard PAYE employee without my own company, but I could do that quite easily.

If you don't have your own company with its own source of income, it won't work because the money that would go in would be post tax money, so you'd just be increasing your tax charge.

The only thing to watch is minimum cash wage rules which still apply to directors who actually work for the company (I believe) rather than just directors who only sit on board meetings.

So my car is owned by my company and at present i'm not drawing a wage as i have other sources of income which means it wouldn't be tax effective,

So in essence the whole value of the car is put as a cost to the company against my corp tax. I've not done as a salary sacrifice as there is no loan on the car anymore and i don't have a salary!

I have got my accountant to issue a P11d and so i pay the BIK on the car against my self assessment. I save more in Corp tax than the BIK...

Also all car costs come out of the company rather than my own personal income...

One thing i'm not sure on is the Electric car mileage allowance - the HMRC guidelines are pityful at 9p and sometimes this isn't covering my journey. Apparently i can use a higher allowance if i can prove this so i can submit invoices from chargers i guess!

 

[Dabz]

The business can also pay for a charger installation at home if it’s issuing an electric company vehicle.

pays for tyres, insurance, tax (when that comes), maintenance…

 

[Midlifecrisis]

Basically you save the corporation tax on the depreciation. However as corporation tax changes after April you could end up costing money depending exactly how the figures work out. There is another thread on this somewhere in the last few days

 

[Speuk]

Or if buying as a sole trader or partnership you can claim the first year allowance on the proportion of cost attributed to business use. So if say 80% business use you can offset 80% of the cost against profit in the tax year at your marginal tax rate. Of course you then pay tax on the same percentage of resale value when you come to sell it.

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