What does HMRC class as used for BIK

[DSLiverpool]

Looking at an ev company car to soak up some money.

I think I read an ex demo was ok as long as no private owner but I can’t see this online.

What do hmrc class as not new?

[isleofthorns]

am guessing if you're (or your company) are not the first registered keeper, then it's not new.

tbh, not sure it really matters. only difference is how the asset is offset / depreciated against tax, but the end result is much the same

[DSLiverpool]

isleofthorns said:

am guessing if you're (or your company) are not the first registered keeper, then it's not new.

tbh, not sure it really matters. only difference is how the asset is offset / depreciated against tax, but the end result is much the same

But the BIK to the user is significant I’m sure

[Gnevans]

If it is demo/vat qualifying it is ok.

[DSLiverpool]

Gnevans said:

If it is demo/vat qualifying it is ok.

Ta

[Seventy-Eight]

DSLiverpool said:

But the BIK to the user is significant I’m sure

BIK is always based on original list cost including options, so new / used is irrelevant

100% first year allowance for corp tax is dependent on whether new / used

[Eric Mc]

Cars (apart from electric cars) do not qualify for 100% Capital Allowances.

[DSLiverpool]

Eric Mc said:

Cars (apart from electric cars) do not qualify for 100% Capital Allowances.

It’s an EV Eric - I don’t want one as such but the consultancy business is heading for a big Corp tax bill I need to dissipate.

[wattsm666]

As stated above BIK is based on list price, nothing to do with used/new or ex-demo.

Capital allowances is based on new or ex-demo. I think the only way to be sure it is an ex-demo is that it has only had one owner (being the dealer).

[DSLiverpool]

wattsm666 said:

As stated above BIK is based on list price, nothing to do with used/new or ex-demo.

Capital allowances is based on new or ex-demo. I think the only way to be sure it is an ex-demo is that it has only had one owner (being the dealer).

Got it, thanks

[Jockman]

Dave I’d be looking at pensions before EV if you’re worried about the corp tax.

Remember your corp tax bill this year will be a blended rate with many companies not hitting the full 25% until next year.

[DSLiverpool]

Jockman said:

Dave I’d be looking at pensions before EV if you’re worried about the corp tax.

Remember your corp tax bill this year will be a blended rate with many companies not hitting the full 25% until next year.

I agree, I’ve just done the half year accounts so we can see what it’s going to look like.

I’m panicking a bit as it’s always been a side line but it’s just got pretty serious last 2 months and it’s caught me by surprise.

Another factor is I’ll also be going to Scotland monthly for at least a year and can’t rely on the old Rangey for that.

[Pit Pony]

DSLiverpool said:

Eric Mc said:

Cars (apart from electric cars) do not qualify for 100% Capital Allowances.

It’s an EV Eric - I don’t want one as such but the consultancy business is heading for a big Corp tax bill I need to dissipate.

Company pension contributions always made my corporate tax tiny.

[Jockman]

DSLiverpool said:

I agree, I’ve just done the half year accounts so we can see what it’s going to look like.

I’m panicking a bit as it’s always been a side line but it’s just got pretty serious last 2 months and it’s caught me by surprise.

Another factor is I’ll also be going to Scotland monthly for at least a year and can’t rely on the old Rangey for that.

No worries mate. Might be worth having a look at ur company structure too. Take advantage of other people’s allowances etc.

You also know I have 3 model S teslas going to auction in 12 months time.