BIK on N1 Commercial 5 Seater

Yawlboy

Hi I'm reposting this here after the guys on the Taxation forum recommended I try and find someone who is running a 5 Seat Discovery (Utility) or Pajero as a company vehicle? If so what BIK are you paying on it i.e. Is it 5% Commercial or Car based BIK?

The LandRover Discovery 4 is definitely an N1 - however the dealers are unable/unwilling to comment on the BIK status. I find it very strange that for VAT, VRT and Motor Tax its treated as a commercial but no one will confirm the BIK status.

The other strange thing is that the dealer reckons it should be NCT'd after 4 years not DOE'd every year!!!

I've also spoken to Mitsubishi about the Pajero Executive 5 seater - they say its N1, VAT reclaimable, low VRT, €333 Motor Tax but full BIK!!!

I am getting conflicting advice from different sources and my accountant is reluctant to commit one way or the other. I've asked my accountant to write to Revenue and get a formal ruling but I would like to know if anyone on here has one and whats the story with BIK.


Thanks in advance
YB

ian87

A friend was looking into one if these last month and his accountant told him he would be paying full bik.

jfarrell32

I have a friend who actually has one of these and pays approx 200 per month which equates to the 5 %.

Can you just ring the revenue and ask them to confirm? brgds John

Drummerboy08

Anyone I have sold a Disco Utility to pays BIK at 5%.

Just as an FYI, but Toyota are doing the same with the Landcruiser shortly, would be a good alternative to the Disco.

jfarrell32

Thanks for the suggestion. Does this work because it is classified as a N1 commercial on the log book? rgds John

R.O.R

Drummerboy08 wrote: »

Anyone I have sold a Disco Utility to pays BIK at 5%.

Just as an FYI, but Toyota are doing the same with the Landcruiser shortly, would be a good alternative to the Disco.

If anyone reads the official revenue guide to BIK, it says anything with seats or windows behind the driver is not a Van.

The 5 seat Discovery has both, and therefore, for BIK purposes, is a Car, and liable to full BIK.

http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-04.pdf?download=true

The Dagda

R.O.R wrote: »

If anyone reads the official revenue guide to BIK, it says anything with seats or windows behind the driver is not a Van.

The 5 seat Discovery has both, and therefore, for BIK purposes, is a Car, and liable to full BIK.

http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-04.pdf?download=true

What about Crew Cab Pickups?

They have both seats and windows behind the driver and they're classed as commercial.

Theanswers

The Irish system is one big mess.

R.O.R

The Dagda wrote: »

What about Crew Cab Pickups?

They have both seats and windows behind the driver and they're classed as commercial.

For road tax purposes they are classed as commercial (if used commercially). For VRT purposes, they are either CAT B or CAT C Commercials.

For BIK purposes, if you took one as a company car after the 1st January 2003, then it's classed as a car as it doesn't meet the Revenue definition of a Van.

Prior to Jan 03 they were BIK'd as commercial vehicles, then the loophole was closed by the Revenue definition of a van. If you had an 02 or older, from new, you were still BIK'd on a commercial vehicle for as long as you have/had the vehicle.

Yawlboy

Drummerboy08 wrote: »

Anyone I have sold a Disco Utility to pays BIK at 5%.

Just as an FYI, but Toyota are doing the same with the Landcruiser shortly, would be a good alternative to the Disco.

Can you ask them if they got revenue approval in advance?

YB

John.Airwave

Yawlboy - I am currently researching this topic also and find the situation very confusing.

The Pajero 5-seat will be available from November and can be taxed commercial for € 333 per year.
However, the Land Rover say the Discovery is liable for private tax at €1492 per year although both vehicles are N1 Commercial ?

What gives ?

R.O.R. - Looking at the revenue rules, there is an exemption for 'work only vehicles'. You could argue that crew cabs (or commerical jeeps) fall into this if you only use them for work purposes

Yawlboy

Hi John,

I've heard the same as you:

Mitsubishi Dealer has said Pajero Exec is commercial tax (and DOE) but full BIK

Landrover dealer has said Disco if cc Tax (and NCT) but commercial BIK

Apparently the Road Tax is set by the RSA and the VRT/BIK by the revenue......

My solicitor has written to the Revenue last week and asked for confirmation on the Disco as far as BIK is concerned. I'll post on here as soon as I get confirmation, to be honest I think a lot of people are chancing their arms with the Discos and BIK but I do hope I am wrong.

YB

R.O.R

John.Airwave wrote: »

R.O.R. - Looking at the revenue rules, there is an exemption for 'work only vehicles'. You could argue that crew cabs (or commerical jeeps) fall into this if you only use them for work purposes

If you only use it for work purposes (and no private usage at all), why would you need a 5 seat model? A single cab pick up, or 2 seat commercial would do exactly the same job, and quite often would be a better choice.

If you have no personal usage of a vehicle, you have no liability anyway, so you could get a 5 seat commercial, but as long as you leave it at the office overnight, and never pop to the shops for lunch, you'll won't have to pay any BIK.



My LandRover dealer used to tell people it was 5% BIK, that's until I pointed out what the Revenue class as a Van for BIK, is different to the definition of an N1 commercial vehicle.

copacetic

Since people are discussing the various issues, can anyone confirm the status of a 5 seat commercial as a private car?

I.e you buy a discovery and you pay the 1200 (now 1452 based on above?) a year. Once you keep taxing it as private all is good? There is no potential issues of rebate of vrt etc? Would it be better to take all risk away and buy a slightly used one?

jfarrell32

Yawlboy wrote: »

Hi John,

I've heard the same as you:

Mitsubishi Dealer has said Pajero Exec is commercial tax (and DOE) but full BIK

Landrover dealer has said Disco if cc Tax (and NCT) but commercial BIK

Apparently the Road Tax is set by the RSA and the VRT/BIK by the revenue......

My solicitor has written to the Revenue last week and asked for confirmation on the Disco as far as BIK is concerned. I'll post on here as soon as I get confirmation, to be honest I think a lot of people are chancing their arms with the Discos and BIK but I do hope I am wrong.

YB

thanks, looking forward to hearing their reponse. rgds John

jfarrell32

copacetic wrote: »

Since people are discussing the various issues, can anyone confirm the status of a 5 seat commercial as a private car?

I.e you buy a discovery and you pay the 1200 (now 1452 based on above?) a year. Once you keep taxing it as private all is good? There is no potential issues of rebate of vrt etc? Would it be better to take all risk away and buy a slightly used one?

If you buy one privately you get a great utility vehicle for a good price (think it is 55k now). I guess it is up to you whether you tax it commercially or privately? How will the tax office know whether you use it for work or not, so long as the log book gives you the option by designating N1 class. rgds John

Yawlboy

My accountant tried contacting revenue in relation to the BIK issue and got the runabout as he could only get answers in relation to VRT and not BIK. However he did speak to the Director of Taxation in Chartered Accountants Ireland and speaking with him he was of the view that by having seats behind the driver, rear doors and glass in those doors it did not meet the Revenue definition of a commercial vehicle for BIK purposes. :(:( He also sent me this:

Meaning of “van”
A van means a mechanically propelled vehicle which –
· Is designed or constructed solely or mainly for the carriage of goods or other burden, and
· Has a roofed area or areas to the rear of the driver’s seat, and
· Has no side windows or seating fitted in that roofed area or areas.
Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car.

Reading between the lines, the Revenue are saying this is a self-assessment issue. They have provided us with guidance and it is up to us to apply that guidance. Based on my understanding of the above and the results of my discussions with professional colleagues the vehicle should be treated as a car for BIK purposes. There is a huge exposure to the company by way of interest and penalties for an incorrect BIK treatment in the event of a Revenue Audit.

I know this is not the answer you were looking for but in my view it is the correct one in these circumstances.

Theanswers

Yawlboy wrote: »

My accountant tried contacting revenue in relation to the BIK issue and got the runabout as he could only get answers in relation to VRT and not BIK. However he did speak to the Director of Taxation in Chartered Accountants Ireland and speaking with him he was of the view that by having seats behind the driver, rear doors and glass in those doors it did not meet the Revenue definition of a commercial vehicle for BIK purposes. :(:( He also sent me this:

Meaning of “van”
A van means a mechanically propelled vehicle which –
· Is designed or constructed solely or mainly for the carriage of goods or other burden, and
· Has a roofed area or areas to the rear of the driver’s seat, and
· Has no side windows or seating fitted in that roofed area or areas.
Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car.

Reading between the lines, the Revenue are saying this is a self-assessment issue. They have provided us with guidance and it is up to us to apply that guidance. Based on my understanding of the above and the results of my discussions with professional colleagues the vehicle should be treated as a car for BIK purposes. There is a huge exposure to the company by way of interest and penalties for an incorrect BIK treatment in the event of a Revenue Audit.

I know this is not the answer you were looking for but in my view it is the correct one in these circumstances.

A crew cab has glass and seats behind the driver - yet it is classed as van.

4x4s are designed to haul goods... That's what there drive chain is designed for (Heavy and rugged) therefore it could be argued that this is not a car but a 4x4 designed primarily for the haulage of goods. That is why the manufacture removed the two rear seats making it a five seater. The seven seater it could be argued is the car version. The five seater N1 Commercial is the Van Version.

Could one panel off the furthest rear windows and say this is the goods area?

They seem to want their cake and eat it.

R.O.R

Theanswers wrote: »

A crew cab has glass and seats behind the driver - yet it is classed as van.

Not for BIK purposes it's not - unless you've had it since 2002.

Theanswers wrote: »

4x4s are designed to haul goods... That's what there drive chain is designed for (Heavy and rugged) therefore it could be argued that this is not a car but a 4x4 designed primarily for the haulage of goods. That is why the manufacture removed the two rear seats making it a five seater. The seven seater it could be argued is the car version. The five seater N1 Commercial is the Van Version.

4x4's are designed to go off road, on various different surfaces. I've been in a 5 Seat Disco - that is not designed to haul goods

Theanswers wrote: »

Could one panel off the furthest rear windows and say this is the goods area?

Could do, won't make a blind bit of difference to the BIK you pay, but would seriously de-value the vehicle. Unless you remove all the seats and glass behind the drivers seat, it doesn't meet the revenue classification of a VAN for BIK purposes.

Theanswers wrote: »

They seem to want their cake and eat it.

Who? The driver's who want a €67,000 vehicle, but only want to pay BIK at 5% and are willing to sacrifice 2 seats for it?

Yawlboy

I have posted this in the Pajero Thread as well but I got a few PM's on the subject so I'm reposting here.

My accountant finally got a response from Revenue and its not good

How the vehicle is treated depends on whether it falls within the definition of a 'car' or the definition of a 'van'.
Essentially, a 'car' means; any mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more persons other than (a) a motorcycle, (b) a van or (c) a vehicle not commonly used as a private vehicle and unsuitable to be so used. The definition of a car includes motorcycles over 410kgs.
A van means a vehicle which was designed or constructed solely or mainly for the carriage of goods or other burden, and which has a roofed area or areas to the rear of the driver's seat and no seats or side windows in that area.
Adapting say a four - seater crew cab (e.g. taking out the back seats) would not change the vehicle from being a car to a van, as subsequent adaptation cannot alter the original purpose of design or construction. Even with the back seats removed, the vehicle would still be classed as a car for benefit in kind purposes having regard to the original construction. If the vehicle does fall into the definition of a van, the vehicle is not automatically excluded from the benefit in kind charge. There will be no charge to tax, where all of the following conditions are satisfied:
the van is supplied by the employer to the employee for the purposes of the employee's work,
the employee is required by the employer to bring the van home after work,
apart from travelling from work to home and back to work, other private use of the van by the employee is forbidden by the employer, and there is in fact no other private use,
in the course of his or her work, the employee spends at least 80% of his or her time away from the premises of the employer to which he or she is attached

R.O.R

So - pretty much as I stated all along?

Yawlboy

R.O.R wrote: »

So - pretty much as I stated all along?

I just wanted to relay what the Revenue had officially said to my accountants not disagreeing with you in any way.

brownestone

Is there any way around paying the higher BIK? I have done around 24,000 km for work so far this year so I am looking at getting a car for work because I think it would make more sense. Usually I would do over 40,000 km a year, work 80% or more away from the office and will be using my own car for my personal mileage.

I get the impression that from the above I would have to pay 12% BIK if I get an N1 Commercial to carry equipment and 2/3 others, and also my usual expenses for my own car that I would use at the weekend.

Thanks

R.O.R

brownestone wrote: »

Is there any way around paying the higher BIK? I have done around 24,000 km for work so far this year so I am looking at getting a car for work because I think it would make more sense. Usually I would do over 40,000 km a year, work 80% or more away from the office and will be using my own car for my personal mileage.

I get the impression that from the above I would have to pay 12% BIK if I get an N1 Commercial to carry equipment and 2/3 others, and also my usual expenses for my own car that I would use at the weekend.

Thanks

Based on what you say, you'd be hit with BIK - as far as I'm aware, there is no way to avoid it, unless there is no personal usage at all, and that involves leaving the vehicle at the office overnight, every night. As you work 80% of the time away from the office, that doesn't sound practical.

Over 40,000km per annum on business (but less than 48,000km), on an LR Discovery Utility would mean you'd be taxed on an extra €510 or so per month (12% BIK, Metallic as the only option).

As you'd be paying for personal usage of the vehicle (from a BIK point of view), I'd use the company vehicle at the weekend instead of your own. Either sell your current car, or swap it for something more fun.

R.O.R

R.O.R wrote: »

Based on what you say, you'd be hit with BIK - as far as I'm aware, there is no way to avoid it, unless there is no personal usage at all, and that involves leaving the vehicle at the office overnight, every night. As you work 80% of the time away from the office, that doesn't sound practical.

Over 40,000km per annum on business (but less than 48,000km), on an LR Discovery Utility would mean you'd be taxed on an extra €510 or so per month (12% BIK, Metallic as the only option).

As you'd be paying for personal usage of the vehicle (from a BIK point of view), I'd use the company vehicle at the weekend instead of your own. Either sell your current car, or swap it for something more fun.

Surely all this having to drop it back to the office etc is almost unenforceable?

Its not uncommon for people to drive "pool" vehicles as their main vehicle for both business and private use and I've never heard the people I know who did it/are doing it get any hassle at all over it.

R.O.R

Opal Sticky Mermaid wrote: »

Surely all this having to drop it back to the office etc is almost unenforceable?

Its not uncommon for people to drive "pool" vehicles as their main vehicle for both business and private use and I've never heard the people I know who did it/are doing it get any hassle at all over it.

What happens and what should happen, are quite often different things. How some people evade tax is up to them, but I wouldn't like to be on the receiving end of a Revenue Audit (which does happen).

Drummerboy08

By right a log of who had the pool vehicle, when and how long for has to be kept.

I've heard nasty cases of Revenue catching people on that one.

vibe666

I was very interested in getting in on the BIK action with the Pajero Executive, but my accountant was told directly by revenue, that if there's anything even remotely resembling seats behind the driver and passenger seats, you can forget it.

I was also told by a mate who was looking at the land cruiser equiv. that when he was enquiring about them, the sales guy told him that they had only sold two of the new shape 7 seater LC's in the whole country. :eek:

Marcusm

Brownestone

When you say you are away 80% of the time, do you mean 80% of nights away? If yes, and you genuinely do not use your vehicle privately, I see little reason why you need to incur BIK. You may need to modify your home-work base travel on the other weekday or investigate whether you can genuinely have a home work base. That together with a detailed log and an agreement from your employer that you are not entitled to private use may get you there. If you are part if a union, you ahold engage with them for advice or directions. If your financial circumstance permit, seek tax advice. However, BIK mitigation strategies such as this are more commonly familiar to HR, in house tax managers and unions.

AeroKid

Hi guys, just wanted to throw a query out there. I currently have a commerical jeep supplied from work and as I have private use I pay BIK. What I was wondering is if the company was to convert the jeep to a 5 seat commerical does my bik increase?

Thanks

buzz11

Does this shed any light on the topic;

http://www.independent.ie/business/farming/savings-of-10000-likely-as-new-rules-unveiled-for-jeeps-30340286.html

Baldy1980

Hi All

Apologies for reopening a very old thread but have read all of this down and am still a little unclear on what all of the end to end tax treatment is. For clarity, my circumstances are that I am looking at an N1 as a company car - and will be paying BIK as I have personal use.

VRT - this is clear, as car I am looking at is N1 certified at factory, it gets lower VRT

VAT - based on the other posts I see on this site, it seems everyone operates on basis that VAT can be reclaimed. However after reading the Revenue site, it appears to me that the VAT can only be reclaimed if the car will be used for commercial purposes? (I am thinking that this is just being ignored by people)

Road Tax - if you are paying BIK this implies you have personal use. THis means you cannot avail of the lower commercial €333 band and should the tax the vehicle as a personal vehicle.

BIK - again, if you have personal use, then clearly you fall into the BIK regime.


Does anyone have a view on the VAT treatment in particular? Am I being too 'prudent' as I have a feeling the whole country is reclaiming the VAT even though it is inevitable that there is personal use of 99% of these N1 vehicles??

Cheers

Mc-BigE

I was looking at the Ford Kuga 4 seater commercial, which for some bizarre reason falls into the same N1 commercial category as the L.R and Pajero and VWs new Touareg .

Im not sure how they get away with it, but by "removing" the center seat belt and headrest and putting a small sign at the back of the centre console saying "Don't sit here, this vehicle has only 4 seats"

i inquired to my local Ford garage about one that was on carzone and when i asked him about BIK on the vehicle, he said its a commercial vehicle and as such is classed as a Van not a Car.

I asked him could he get something in writing to say this from the revenue.


i haven't heard from him since.

i would like to get one, but im not prepared to take the risk, not so much for getting stopped by the guards for having someone in the back, but more about a revenue audit.

but if you were to pay the car BIK, it does make the cheapest option as the price new is around 30K and not 55K ish for the others.

Casati

Mc-BigE wrote: »

I was looking at the Ford Kuga 4 seater commercial, which for some bizarre reason falls into the same N1 commercial category as the L.R and Pajero and VWs new Touareg .

Im not sure how they get away with it, but by "removing" the center seat belt and headrest and putting a small sign at the back of the centre console saying "Don't sit here, this vehicle has only 4 seats"

i inquired to my local Ford garage about one that was on carzone and when i asked him about BIK on the vehicle, he said its a commercial vehicle and as such is classed as a Van not a Car.

I asked him could he get something in writing to say this from the revenue.


i haven't heard from him since.

i would like to get one, but im not prepared to take the risk, not so much for getting stopped by the guards for having someone in the back, but more about a revenue audit.

but if you were to pay the car BIK, it does make the cheapest option as the price new is around 30K and not 55K ish for the others.

But your comparing apples to pears there. You can get a new Kuga 5 seater for very close to the price of the 4 seater at the moment. The VAT would maybe make it slightly cheaper but not by much as Ford as big discounts not he passenger cars. Its a very different animal to a Disco or Landcruiser so dont think you can compare them.

buzz11

Mc-BigE wrote: »

i inquired to my local Ford garage about one that was on carzone and when i asked him about BIK on the vehicle, he said its a commercial vehicle and as such is classed as a Van not a Car.

I asked him could he get something in writing to say this from the revenue.


i haven't heard from him since.

i would like to get one, but im not prepared to take the risk, not so much for getting stopped by the guards for having someone in the back, but more about a revenue audit.

but if you were to pay the car BIK, it does make the cheapest option as the price new is around 30K and not 55K ish for the others.

What level of mileage do you do in a year? See calculator below regarding BIK costs;

https://www.paylesstax.ie/benefit-in-kind-calculator/

Mc-BigE

i do around 20000 km a year.

Mc-BigE

Casati wrote: »

But your comparing apples to pears there. You can get a new Kuga 5 seater for very close to the price of the 4 seater at the moment. The VAT would maybe make it slightly cheaper but not by much as Ford as big discounts not he passenger cars. Its a very different animal to a Disco or Landcruiser so dont think you can compare them.

the only comparison is that they're both classed the same, N1 Commercial, there is also a very big difference in OMV price on the Disco verses the Kuga. which makes the BIK cheaper.

the only reason i would get one of these N1 commercial utilities was if the revenue were to say its classed as a Van and not a Car, because if its a car then, yes the Kuga 5 seater ( or any car) would be the way to go.

Drummerboy08

They are classed as cars for BIK purposes.

Mc-BigE

Just wondering, as it's been a few years now since the N1 cat C commercial has been around, are there any owners on here or you know if who have gone through a revenue audit and they had to pay 30% bik on their "car" instead of "van". Or if they have successfully argued that their crew cab is indeed a van or that they don't use it other than for work ( how do you prove that)

Thanks

R.O.R

Mc-BigE wrote: »

Just wondering, as it's been a few years now since the N1 cat C commercial has been around, are there any owners on here or you know if who have gone through a revenue audit and they had to pay 30% bik on their "car" instead of "van". Or if they have successfully argued that their crew cab is indeed a van or that they don't use it other than for work ( how do you prove that)

Thanks

It cannot be classified as a Van for BIK purposes if it has seats or windows behind the driver - that's the revenue definition of a Van for BIK purposes.


Another small ish thing to consider is the M50. As these N1 vehicles are registered as commercials, they pay about twice as much to cross the M50 Toll as the passenger version. That can add up if you were to commute that way every day.

Mc-BigE

R.O.R wrote: »

It cannot be classified as a Van for BIK purposes if it has seats or windows behind the driver - that's the revenue definition of a Van for BIK purposes.


Another small ish thing to consider is the M50. As these N1 vehicles are registered as commercials, they pay about twice as much to cross the M50 Toll as the passenger version. That can add up if you were to commute that way every day.

Thats true, eflow/easytrip/VRT/Road Tax/DOE think that its a van but revenue thinks its a Car for BIK, the irish system is so fu$ked up.

anyway this really wasn't my question, we (i) have been down this road before regarding car or van, i just want to know if anyone has been audited with one of these, just to see if they were able to fight it or did they have to repay the 30% BIK

edited: just had a look at the eflow website : car is 2.60 (registered with no tag) van less than 2000kg is 3.40 and 4.70 for over 2000kg

which is more, but then again if your using it for business, then you should be able to claim back the toll as an expenses, and get the VAT off

jiggajt

I am a one man band consultant engineer looking to buy a crew cab pickup which i will also use for personal use and i am pretty pissed off about the lack of clarity from revenue regarding BIK. The rules state that as long as it has a goods storage compartment behind the drivers seats (which in my books a crew cab pickup has) then it should be classified under the 5% BIK rules.

I think what pisses me off most about it is the amount of people i know who are driving around with kids seats in the back paying NO BIK.

It is not feasible for me to pay 20%, it is not feasible for me to purchase a vehicle solely for commercial purposes and leave it at the office as my office is at home and it is not feasible for me to do nothing as i will lose a valuable contract.

In the UK, all pickups are classified as commercial from a BIK point of view once they can carry a payload of 980Kg or so.

Casati

jiggajt wrote: »

I am a one man band consultant engineer looking to buy a crew cab pickup which i will also use for personal use and i am pretty pissed off about the lack of clarity from revenue regarding BIK. The rules state that as long as it has a goods storage compartment behind the drivers seats (which in my books a crew cab pickup has) then it should be classified under the 5% BIK rules.

I think what pisses me off most about it is the amount of people i know who are driving around with kids seats in the back paying NO BIK.

It is not feasible for me to pay 20%, it is not feasible for me to purchase a vehicle solely for commercial purposes and leave it at the office as my office is at home and it is not feasible for me to do nothing as i will lose a valuable contract.

In the UK, all pickups are classified as commercial from a BIK point of view once they can carry a payload of 980Kg or so.

If you leave the vehicle at your office ordinary are you not exempt from BIK?

Revenue don't say your office can't also be your home do they?

jiggajt

jiggajt wrote: »

I am a one man band consultant engineer looking to buy a crew cab pickup which i will also use for personal use and i am pretty pissed off about the lack of clarity from revenue regarding BIK. The rules state that as long as it has a goods storage compartment behind the drivers seats (which in my books a crew cab pickup has) then it should be classified under the 5% BIK rules.

I think what pisses me off most about it is the amount of people i know who are driving around with kids seats in the back paying NO BIK.

It is not feasible for me to pay 20%, it is not feasible for me to purchase a vehicle solely for commercial purposes and leave it at the office as my office is at home and it is not feasible for me to do nothing as i will lose a valuable contract.

In the UK, all pickups are classified as commercial from a BIK point of view once they can carry a payload of 980Kg or so.

You could just buy it yourself and reclaim the VAT (if vat registered) rather than buy through the company. You will still be able to write it off as a capital allowance but won't have to mess around with BIK. Would there be really that much of a cost saving by buying it in the name of your company and paying 5% BIK compared to buying it yourself as above?

Mc-BigE

how can you claim the vat back if you buy it personally? surely it would have to be owned by the company , not you, to claim the vat back?  also its pre-tax income that you are using , not net which is also a saving

Im in the same boat as jiggajt above, i still have a 2 seater van and dont think its worth the hassle or sleepless nights waiting for an audit letter. i suppose there are other people that sleep better than i do (with baby seats in the back etc) 

Depends on how he is setup for tax. You will find that a lot of people can claim back the VAT on stuff they buy in their own name.

Casati

Opal Sticky Mermaid wrote: »

Depends on how he is setup for tax. You will find that a lot of people can claim back the VAT on stuff they buy in their own name.

Not legally there isn't, for the company to claim the vat back the company would have to purchase and pay for the vehicle

Casati

Casati wrote: »

Not legally there isn't, for the company to claim the vat back the company would have to purchase and pay for the vehicle

If it's a one man don't show he may be the company though.

Sole traders, farmers etc would have a vat number associated with their name as an example and a jeep they buy would be in their name but vat can still of course be reclaimed.

jiggajt

Opal Sticky Mermaid wrote: »

You could just buy it yourself and reclaim the VAT (if vat registered) rather than buy through the company. You will still be able to write it off as a capital allowance but won't have to mess around with BIK. Would there be really that much of a cost saving by buying it in the name of your company and paying 5% BIK compared to buying it yourself as above?

How does the reclaim of VAT myself work? I am a limited company not a sole trader if that is what you are referring to.

The savings are pretty substantial particularly if you need a heavy duty vehicle like this for work which i do. You can put the cost of the vehicle, VRT, Road Tax, Insurance, Fuel and Maintenance all through the company "pre-tax" unlike what i am doing now with my car. I think you can also write the depreciation of the vehicle off against tax which is another benefit.

barneystinson

Opal Sticky Mermaid wrote: »

If it's a one man don't show he may be the company though.

Sole traders, farmers etc would have a vat number associated with their name as an example and a jeep they buy would be in their name but vat can still of course be reclaimed.

The thread is about BIK on company owned vehicles, and the poster resurrecting the thread mentioned BIK, so quite clearly he's trading through a company...

jiggajt

Mc-BigE wrote: »

Im in the same boat as jiggajt above, i still have a 2 seater van and dont think its worth the hassle or sleepless nights waiting for an audit letter. i suppose there are other people that sleep better than i do (with baby seats in the back etc) 

I hear you my friend. How many people do you see driving around in and X5 or a Range Rover with blackened rear windows on sites. You just know they are paying the lower BIK rate if they are paying it at ALL??? This appears to be widespread and part of me just wants to go ahead and do it as even if they do crack down on it surely the problem is too rife for them to fine everyone???

What i find weird is that if you buy such a vehicle you CAN register it as a commercial for VRT and MotorTax but NOT for BIK... How does that work???:mad:

I genuinely need a twin cab 4 X 4 with goods carriage in the back for this job i am doing.