Speak EV - Electric Car Forums banner

1 - 6 of 6 Posts

·
Registered
Kona PremSe64k 2020+bluelink +ohme
Joined
·
468 Posts
Discussion Starter #1
So whilst I am retired, my wife is still earning well say 50-50 self-employed and employed. Our new car will be in her name anyway. So my question is, is it worth while buying the car as a company car in order to gain the EV BIK advantage, or not. Or is it just too much trouble / worth to try to go there.
 

·
Registered
Joined
·
17,463 Posts
You only get the advantage if you pay yourself a salary through the limited company.

I assume you don’t have revenue to put through the company?
 

·
Registered
Kona PremSe64k 2020+bluelink +ohme
Joined
·
468 Posts
Discussion Starter #3
You only get the advantage if you pay yourself a salary through the limited company.

I assume you don’t have revenue to put through the company?
Thanks, that's pretty clear. No she doesn't.
 

·
Registered
Joined
·
129 Posts
Whether you have a salary or not isn't relevant. Or indeed revenue. All that matters is whether she has the money available in the company (or borrow it) to buy an electric car. If so it can be done. However you have to consider income tax, corporation tax, capital allowances and plenty of others. It's best she asks her accountant for advice.
 

·
Registered
Joined
·
17,463 Posts
Whether you have a salary or not isn't relevant. Or indeed revenue. All that matters is whether she has the money available in the company (or borrow it) to buy an electric car. If so it can be done. However you have to consider income tax, corporation tax, capital allowances and plenty of others. It's best she asks her accountant for advice.
The question was should one set up a limited company purely for the purpose of saving BiK.

As there is no revenue, the only cash input being a director loan, then the answer is no.

If there is no revenue then there can be no corporation tax. Therefore there can be no saving on corporation tax.

Indeed one has to question why you would put money into the company, merely to pay yourself a salary and incur NI.
 

·
Registered
Joined
·
129 Posts
Was it? The OP doesn't state setting up anything and talks as if his wife already has a limited company. For reference, many people use self-employed to mean having a limited company. Even mortgage advisors etc don't make the distinction. Annoying but that's the way it is.

If the OP is considering setting up a limited company, then the calculations need to be done vs the current sole trade. The sole trade income could be moved over and away they go. As ever, personal circumstances are important.
 
1 - 6 of 6 Posts
Top