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Buying car through limited company

  • 10-11-2021 11:46PM
    #1
    Registered Users, Registered Users 2 Posts: 830 ✭✭✭


    I am looking to buy a car through my limited company and I’m w weindering what’s the best way to do it.

    I am employed full time wilth a salary of €90000 and have a side business that has around €30000 that can be taken as salary. 

    I have not taken any salary out of the company so far and i am not on the payroll.

    I am looking at a second hand car for around €25000 that would have an omv of around €45000.

    eyJidWNrZXQiOiJkb25lZGVhbC5pZS1waG90b3MiLCJlZGl0cyI6eyJ0b0Zvcm1hdCI6ImpwZWciLCJyZXNpemUiOnsiZml0IjoiY292ZXIiLCJ3aWR0aCI6NjAwLCJoZWlnaHQiOjQ1MH19LCJrZXkiOiJwaG90b18xOTcyNTkxNjYifQ==?signature=f88b7cb3769201a0646d9900a9445dcb7802cb4e224e41341068afb7abfc4e7f


    if I take €30000 as salary I’ll be taxed at over 50% but if I buy it through the company I’ve calculated the BIK would be €500+ a month which wouldn’t be much better.

    Would anyone be able to advise me on the best way to pay for a car in my circumstances?

    i have ran it by my accountant who said my BIK would be €172 per month which seems very low to me. I’m waiting for him to explain the figures but it’s obviously a very busy time of the year for him so hoping to get some advice here in the meantime.



Comments

  • Registered Users, Registered Users 2 Posts: 269 ✭✭Bobby1984


    Buying cars through a limited company is generally a bad idea especially high value cars because of the BIK rules so it is not recommended. The one exception is where the car is an EV (electric vehicle) as there is no BIK on cars valued at under €50K (based on current rules)



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