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Company Car

  • 06-09-2016 03:47PM
    #1
    kig
    Registered Users, Registered Users 2 Posts: 293 ✭✭


    Hi,
    We run a small business from home and are about to buy a used car which will be used predominantly for business use. Is there a benefit in registering it as a company car, can I deduct the cost from my earnings?


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    kig wrote: »
    Hi,
    We run a small business from home and are about to buy a used car which will be used predominantly for business use. Is there a benefit in registering it as a company car, can I deduct the cost from my earnings?

    Do you have a company?


  • #3
    kig
    Registered Users, Registered Users 2 Posts: 293 ✭✭kig


    Yes therefore the question


  • #4
    Lockedout2
    Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    A company car is subject to BIK based on its OMV and level of business Kms.

    So it depends on how much the car cost when it was new, how much it costs now and many business Kms you do in it.

    http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/private-use-cars.html

    You might be better off buying it personally and charging the company for mileage.


  • #5
    exaisle
    Registered Users, Registered Users 2 Posts: 2,673 ✭✭✭exaisle


    Lockedout2 wrote: »
    Do you have a company?

    To be more specific about this, are you the director(s) of a Limited Company.

    (Some people confuse "business" and "company").

    I'd go along with Lockedout2's suggestion to buy the car privately and to charge the company mileage. You can only do that where the business is operated by a separate legal entity (ie a limited company) and not as a sole-trader or partnership.

    Bear in mind however, that you should keep proper records of the mileage done...ie. date, distance, purpose for each trip. Don't make the mistake of charging a round-figure sum at the end of the year because you didn't keep proper records.


  • #6
    kig
    Registered Users, Registered Users 2 Posts: 293 ✭✭kig


    there are 2 of use who are partners in the company


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  • #7
    Lockedout2
    Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    kig wrote: »
    there are 2 of use who are partners in the company

    Partners are in a partnership.

    Shareholders in a company.

    You have a company, so are a shareholder.


  • #8
    ted1
    Registered Users, Registered Users 2 Posts: 24,178 ✭✭✭✭ted1


    Do you need a car? Depending on your usage there is no BIK on a van


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