Purchasing vehicle through Ltd company

L

lonelyplanet

Registered User
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Hi all,
I have a small company with just 2 of us working in it (spouse and me). We have a van and car which were purchased privately many years ago and looking at the possibility of buying vehicles through the company . I want to upgrade the van and my wife wants to upgrade car ( both old vehicles) and thus looking at the possibility of purchasing van and crewcab jeep through company.

I am wondering if the benefits of tax , insurance and purchase through company outweighs the BIK implications for vehicles as I understand there is an 8% BIK per year on the Open Market Price of Vehicle..(stand to be corrected)

Thanks
 
Van, yes if it's being used for company business.

Car, no unless it is electric (no bik at present).
 
It's capped at 50k alright but rather than just being gone altogether, it's being scaled down over three years and only gone altogether from 2026. Additionally, if you do low mileage the maximum BIK rate of 30% will be dropping to 22.5% for Class A emissions vehicles.

This site has a very good illustration of the changes:

Budget 2022 Update on BIK on Electric Cars | Icon Accounting - Accountancy Services for Contractors

Compare and contrast your current take home pay with your take home pay as a contractor with Icon Accounting.
www.iconaccounting.ie www.iconaccounting.ie

Revenue publication:
 
Do people therefore find it advantageous to have a car used for personal and business use sat in their company or just managed personally?
 
Steven Barrett said:
It's also capped at €50,000, so no Tesla's!
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The exemption applies to the first €50k, so you can buy a €60k Tesla and still see a big saving.

I bought an EV through the company a couple of years ago. I put the figures into a spreadsheet so I could compare, it made a lot of sense for me. With it starting to taper down now it might not be as clear cut. I cannot imagine it works out too beneficial for non-EVs in many cases.
 
Zenith63 said:
The exemption applies to the first €50k, so you can buy a €60k Tesla and still see a big saving.

I bought an EV through the company a couple of years ago. I put the figures into a spreadsheet so I could compare, it made a lot of sense for me. With it starting to taper down now it might not be as clear cut. I cannot imagine it works out too beneficial for non-EVs in many cases.
Click to expand...
Hello again!

I also have an EV via the company and it's definitely worth it.
 
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