It's too hot to think this through

Devious client

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Client's company bought a very expensive car. I've indicated the huge BFIK so the client has tried this idea

She will buy the car from the company and pay for it over 4 years via an increase in salary. Title to change hands on day 1

Anyone got any thoughts ??

 

Replies (8)

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By SteveHa
18th Jul 2017 14:43

Only the potential beneficial loan to the employee/director and potential S.455. Provided it's bought at OMV.

Possibly also have to consider a balancing allowance/charge on disposal.

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By Ruddles
18th Jul 2017 14:55

You need to do the numbers. Impossible to give meaningful advice without them.

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By bernard michael
18th Jul 2017 14:55

Perhaps charge commercial rates on the purchase?

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By mrme89
18th Jul 2017 15:09

How was the car purchased?

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By Democratus
18th Jul 2017 17:02

It's simply a loan from the company to buy a car. Usual loan rules apply.

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By ireallyshouldknowthisbut
18th Jul 2017 17:03

When crunching the numbers also consider paying a sum back to the company equivalent to the BFIK.

I assume the car has not been delivered yet. Also consider simply buying it personally and not going anywhere near the company accounts. Garage wont care so long as they get paid.

O and buy an office fan. *enjoys breeze in my shorts*

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By Nigel Wulcko
19th Jul 2017 11:48

The type of expensive car may make a difference - the company would get a 100% FYA for a Tesla, but not for, say, a Maserati Quattroporte.

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By Vaughan Blake1
19th Jul 2017 16:42

When you crunch the numbers try the scenario where the car is provided as a BIK for 'a while' and then bought from the company as a second hand vehicle at a figure less than the original cost. If you subscribe to the view that the car loses thousands as soon as it leaves the dealer's forecourt, the 'a while' need not be too long!

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