BIK, company cars, classic cars...

Merrion

The revenue site states that:-

10. What is the Benefit-In-Kind on a Car?
The Benefit-in-Kind on a car, made available by an employer for an employee’s private use, is 30% of the original market value of the car, where the employer also pays for all the normal running costs. The original market value is the cost of the car when purchased new and includes Vehicle Registration Tax. However, if the employee pays any of the following costs, the 30% Benefit-in-kind is reduced:

So does this mean it would be worth my while making my GT6 (assuming it gets restored within my lifetime) a company car and could I thus reclaim all the VAT on the restoration?

halkar

I am not sure in practical but in theory yes you can. You can claim VAT back as repairs and service costs. What would worry me is to check with revenue that how will they value your car as the value of the car is not reduced as far as they concern it doesn't matter how long you use it. E.G you have a company car bought on 2000 for €20000, today your tax still calculated form that value even though yuor car might only worth €5000. Talk to revenue, they are very helpfull

Merrion

True - but I think the list cost of a GT6 purchased new was approx stg.£700 (in 1973 money) - so round that up to €1000 this would mean a BIK of €300..even at top rate tax that's only an extra €180pa.

halkar

I am not sure if revenue will fall for this but going by their rules that is how it should be. €130 pa Sounds sweeeeeet:D

Johnmb

I once had a client who did that. I can't remember the make/model, but it cost about £500 when new, so he put it through the books, paid very little BIK, and claimed everything for restoring and running the car as a business expense. The revenue commissioners never queried it, and unless they have changed the rules since then, they would have no grounds to query a similar action now.

Merrion

Just got a note back from the owner's club in the UK. The original list price was stg.£1449 so approx €2150. 30% of that is €645 and even at top rate tax (which I'm unlikely to reach) that means the maximum BIK cost would be €387...so I am definitely going to see what the revenue think of that idea.