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 ??
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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.
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*
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.
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!