Ferrari on company balance sheet

[oharedm]

Has anyone looked into (or actioned) putting a Ferrari on their company balance sheet as an asset. I will need to put in additional cash in as Director loan + the trade-in value of my existing 488.
I presume insurance become more complicated ie. expensive ? Tax implications ?

[johnnyreggae]

As I understand your idea vehicle would become personal benefit in kind with associated large income tax bill - better off loaning cash from company to you then only tax on interest not paid - I am not a tax professional so DYOR

[Mulsanne-Speed]

I looked at doing this with a Cullinan, until our accountant told us I would have no choice but to pay BIK. The BIK worked out at just over £50k per annum (so about £1k per week).

I explained to our accountant that it genuinely would be used solely for travelling between offices (which was true), but I was told that wouldn't wash, BIK would still apply.

I also asked the question, "as it would just be for business use, could we perhaps put it down as a pool car", once again, it was a no go. To have to qualify as a pool car, you need to demonstrate that it is also available to other employees and that the car will be mostly kept at our primary business address, so not at my home.

In short, you've no chance without paying BIK - HMRC will always get you one way or another!!!

In the end, it worked out cheaper to just buy it myself - I suspect you'll find the same.

[Eatpies99]

Mulsanne-Speed said:

I looked at doing this with a Cullinan, until our accountant told us I would have no choice but to pay BIK. The BIK worked out at just over £50k per annum (so about £1k per week).

I explained to our accountant that it genuinely would be used solely for travelling between offices (which was true), but I was told that wouldn't wash, BIK would still apply.

I also asked the question, "as it would just be for business use, could we perhaps put it down as a pool car", once again, it was a no go. To have to qualify as a pool car, you need to demonstrate that it is also available to other employees and that the car will be mostly kept at our primary business address, so not at my home.

In short, you've no chance without paying BIK - HMRC will always get you one way or another!!!

In the end, it worked out cheaper to just buy it myself - I suspect you'll find the same.

Different through a LLP. No BIK for partners.