High Clarity Accountants

TAX TIP OF THE WEEK – Ever considered getting a classic set of wheels to take advantage of the tax breaks

It is generally not recommended to purchase a petrol/diesel car through the company due benefit in kind charges that apply.

These are based on the original list price and CO2 emissions of the vehicle meaning it can add up to a fair bit of personal tax.

However, if you consider a classic car then you can slash this personal tax for the following reasons:
– The original list price is likely to be must lower
– The benefit in kind charge will be based on engine size rather than CO2 emissions

An additional benefit if it is a genuine classic then it is likely to go up in value rather than down, however, you should be careful to ensure it won’t go above ¬£15,000 in value as the tax is then based on market value rather than list price.

For more tax strategies download our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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