Classic car as company car ?

[phib]

So been looking at company cars and can’t go electric as my once a week commute is too far.

So been thinking about a classic car as a company car as the threshold is 2006 (15 years old now)

Abs basically the benefit means (from what I can work out) is that you get charges the 37% bik on the current value of the car rather than the list which works for modern classics.

Does anyone have any experience of this ?

Thanks

Phib

[wattsm666]

The trick is to get a classic car with a MV of less than £15k. The Bik is then calculated on the original list price, so a 70’s triumph might only have a list price of £500 or so. Benefit in kind is then next to nothing.

[phib]

I was actually thinking something more mad like a Ferrari 430 !!

At least you then only pay bik on £40k assuming you put done say £20k yourself !

Phib

[anonymous-user]

Buy the car yourself, claim business mileage and use a car allowance. Less complicated than the BiK system and will allow for much greater flexibility.

If you set your place or work to home, you will qualify for business miles when you do go to the office.

• Assuming you have this option.

[phib]

RJWR said:

Buy the car yourself, claim business mileage and use a car allowance. Less complicated than the BiK system and will allow for much greater flexibility.

If you set your place or work to home, you will qualify for business miles when you do go to the office.

• Assuming you have this option.

I do all that already, but the running costs would make the difference.

I already have a 355 so know what to expect (costs wise)
Basic theory was run it 3 years in the company depreciate it and pull it out ?

Phib

[wattsm666]

When you pull it out of the company in due course it would have to be at market value. I’m not convinced a Ferrari would actually lose value over a few years.

Edited by wattsm666 on Sunday 28th March 11:08

[DaveH23]

15 year old cars are still modern, or am I missing something?

[phib]

It’s 15 years in the ruling from what I can read in HMRC docs.

Re Ferrari loosing value, trust me a 32k mikes over three years will halve the value !!

Phib

[phib]

[NDT]

wattsm666 said:

The trick is to get a classic car with a MV of less than £15k. The Bik is then calculated on the original list price, so a 70’s triumph might only have a list price of £500 or so. Benefit in kind is then next to nothing.

That's my understanding too, having read HMRC's bumf in detail.
So in reality it means there are relatively few "interesting" cars that you might run as a company car cost effectively.

For example:
My 1962 Mini- current value of say £8k (so under £15k) - BIK based on its original list price of £400 or so. Bargain.
An E-type or some other exotica: current value £50k (or whatever, so over £15k) so BIK based on the £50k not the list price of £2250.