Buying out a Company Car

rocketspocket

I own a small limited company (2 employees) and hope to buy out my EV as i purchased for 70 and currently only work around 35k. Does anyone know how to go about this? How can i get the car valued to Revenue won't come knocking? Is simply a case of getting a 'trade-in' price in writing?

Thanks..

Mick Tator

I cannot see Revenue getting very focused on a sale at that level. To be safe, go onto a few car trader sites, record identical models for sale, average their prices and use that as a valuation. Keep the record.

Prior to Brexit I imported an expensive car, was hit by what I regarded as an excessive valuation for VRT.  did the above from adverts, appealed and in less than a week they had reduced the valuation and issued a refund.

mickdw

You buy it from the company for fair market value. I'd imagine you could easily go as low as trade value on it but there may be balancing charges required within the company.

I'd get a written offer from a main dealer of that brand to buy it back from you. That should be pretty low.

Is the ev getting replaced within the company also?

rocketspocket

https://www.boards.ie/discussion/comment/121885114#Comment_121885114

No - there will be no longer any vehicles in the business once i buy-out the EV. Thanks for the advice,

mickdw

I'd imagine it will cost the company money to release it assuming it's a pretty fresh car.

There was a scheme where full cost of ev could be depreciated in one year for tax purposes. I'd imagine if you used this, the costs to company now to release car may be quite high.

rocketspocket

https://www.boards.ie/discussion/comment/121887228#Comment_121887228

Yep - ACA but i didn't avail of this.. can't see any cost to the company (except the depreciation)