declaring a car as a business car

Hi, this might be the wrong forum to ask this question.. what is the procedure for declaring your personal car as your business car? The business is registered as a Ltd company and has a CRO company number for three months now.

Thanks

JMR

Don't understand the question, sorry.

Is the car owned by you personally or is it an asset of the company?
Do you want to transfer ownership of the car from you to your company?

drunkmonkey

That might not be a smart thing to do, depending on its original value. Charge the company milage instead.
Are talking about insurance, if so you don't need to register the car to a business to have business class insurance

Irishphotodesk

antigravity2 wrote: »

Hi, this might be the wrong forum to ask this question.. what is the procedure for declaring your personal car as your business car? The business is registered as a Ltd company and has a CRO company number for three months now.

Thanks

Business purchases the vehicle, pays the tax and insurance for employees to drive, employee pays benefit in kind for usage of vehicle, I’m sure there are other taxes which may apply, maybe the Ltd company accountants should best advise.

Darc19

Unless you are doing 50,000km a year it will not be worth it.

Benifit in kind tax is based on the original price of the car when new. So if you drive a 10 year old bmw520, benefit in kind is based on the €45,000 new price and not the €8,000 value.


Only worthwhile company vehicle is a commercial suv, and even then it's still 5% bik.


But you can tot up all the business mileage (not including to and from main place of business) and give yourself the civil service mileage rates tax free.

BnB

As one or two posters above have hinted at, you could be asking one of a number of questions here ?

1) Simplest - Do you just want to start using your car for work and make sure you are covered insurance-wise

Then it is just a matter of letting your insurance company know that you now use the car for work and they will adjust your policy (and your quote) accordingly. This won't make any difference to the car tax.

2) Most likely - Do you essentially want the car to be owned (or leased) by the company so that you can pay for it through the company.

This is also very easy to do. If you are happy with the car that you have - You can sell it to the company and set them up as the owner and you can drive it. Alternatively, you can just sell your car on Donedeal or whatever and the company can lease a nice new car for you to drive.

However - As a few posters have outlined above - As attractive as this looks like when you see it first, it is not, as you will get absolutely screwed on tax with Benefit in Kind. If you are doing massive mileage (poster above says it's 50k kms - sounds about right), that can come down a bit alright, but even then it is very high. I pulled together so many excel files over the years looking at so many different cars and lease plans etc and every single time, it always came out that I would be better off (usually significantly better off) buying or leasing the car myself than I would be doing it through the company - And that was even before I added in the mileage I could claim back tax free and civil service rates.

If, you don't have any need for back seats (again, as the poster above said) and you are happy to drive a van or a fully commercial SUV, then you can reduce your BIK to a manageable 5%. You could get pulled up on this though by a Garda if you are driving the van (for example) to the beach on a Saturday. They vehicle is Taxed and insured for commercial use only and technically you are not covered when using it for personal use. It doesn't happen that often, but it does happen.