bittered
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I've ordered a new Electric car, it will arrive in January 2024. Instead of purchasing it privately, I am considering buying it through the company and possibly purchasing it from the company in 2025 (after a year of depreciation) at fair market value.
The cost of the car is €53,612. That means at 52% income tax I would need to earn €103,100 before tax at the marginal rate (52%) to pay for it. I calculated first-year BIK at roughly €2k which would be much less than the expected depreciation (~20%) so it should be much cheaper to do it like this.
Here are my calculations (with references): https://docs.google.com/spreadsheets/d/1SUqM-HUiSpLVQeBXsJM7PAfzsjPHMMUbVL6ua_g9_7k/edit?usp=sharing
I want to make sure that (a) my calculations are correct and (b) that there aren't any unintended tax implications that I'm missing. I will run this by my accountant during the week but I'm hoping to get a gut check first.
The cost of the car is €53,612. That means at 52% income tax I would need to earn €103,100 before tax at the marginal rate (52%) to pay for it. I calculated first-year BIK at roughly €2k which would be much less than the expected depreciation (~20%) so it should be much cheaper to do it like this.
Here are my calculations (with references): https://docs.google.com/spreadsheets/d/1SUqM-HUiSpLVQeBXsJM7PAfzsjPHMMUbVL6ua_g9_7k/edit?usp=sharing
I want to make sure that (a) my calculations are correct and (b) that there aren't any unintended tax implications that I'm missing. I will run this by my accountant during the week but I'm hoping to get a gut check first.
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