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Company Taxation Motorcycle

  • 17-06-2017 9:13am
    #1
    Umiq88
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭


    I have a 2 director limited company.

    Currently I run a commercial vehicle through the company. The van is used for business use only however I bring it home in the evenings but don't use it for private use. In this case I am not liable for BIK on free use of comapny assessts. 100% of the cost and running of the van goes against the company.

    I understand if I were to use the van for private use I would be liable for 5% of the OMV to be added on to my gross income to calculate tax.

    Is there any facility within this scheme for LTD company to purchase motorcycle for business use, travelling to and from work and also private use whereby I would be liable to 5% BIK.

    Also if I'm reading correctly I'm whats called a close company and therefore certain benefits are not available to me. Is there a straight forward way past being a closed company or is there and for instance any companies which specialist in setting up companies for consults where numerous consultants are part of the company but they don't all necessarily know each other.


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Umiq88 wrote: »
    I have a 2 director limited company.

    Currently I run a commercial vehicle through the company. The van is used for business use only however I bring it home in the evenings but don't use it for private use. In this case I am not liable for BIK on free use of comapny assessts. 100% of the cost and running of the van goes against the company.

    I understand if I were to use the van for private use I would be liable for 5% of the OMV to be added on to my gross income to calculate tax.

    Is there any facility within this scheme for LTD company to purchase motorcycle for business use, travelling to and from work and also private use whereby I would be liable to 5% BIK.

    Also if I'm reading correctly I'm whats called a close company and therefore certain benefits are not available to me. Is there a straight forward way past being a closed company or is there and for instance any companies which specialist in setting up companies for consults where numerous consultants are part of the company but they don't all necessarily know each other.
    Its important that you understand that travel to your place of business can count as personal use subjecting you to the 5% rule.

    Motor bikes are subject to the same rules as cars set out
    http://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-of-company-cars/calculating-the-cash-equivalent-of-company-cars.aspx

    There are companies like contractingplus which do what you wish, multiple contractors operating through an umbrella company.


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