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Company cars B2B

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    Company cars B2B

    Hypothetical...

    If you own company A (a hire car business) and it purchases a vehicle for company hire, and company B (which you also you own) hires that vehicle; is this an acceptable tax arrangement?

    Company A manages the depreciating asset, and company B utilises the asset, insurances, etc. Fuel paid for my Company B. This is all done as B2B.

    Be gentle.
    http://www.cih.org/news-article/disp...housing_market

    #2
    Are you saying that you would only "hire" the car for business trips and so there would be no BIK?
    …Maybe we ain’t that young anymore

    Comment


      #3
      Is company A going to have more than one car to hire, and will the cars actually be hired out to other people?

      I'm just trying to work out where company A will get enough income from to buy the car(s), unless you're thinking of investing in it from company B.
      …Maybe we ain’t that young anymore

      Comment


        #4
        Yes, business trips only so no BIK.
        http://www.cih.org/news-article/disp...housing_market

        Comment


          #5
          Director of company B loans company A (also the director of) the money; until it can be paid back.

          Probably a long term hire arrangement, with one car initially.
          http://www.cih.org/news-article/disp...housing_market

          Comment


            #6
            You'd have associated companies would you not? You'd have to be careful not to be seen to be offering non market deals in an effort to gain a tax advantage where there would be none on the open market surely? Like renting your BTL to yourself at ridiculous amounts that wouldn't be possible to anyone else.

            You'd assume from the outset that this setup would exist for no other reason than to gain a tax advantage. HMRC won't like that.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by PurpleGorilla View Post

              Be gentle.
              Burn him!
              "You’re just a bad memory who doesn’t know when to go away" JR

              Comment


                #8
                Originally posted by PurpleGorilla View Post

                If you own company A (a hire car business) and it purchases a vehicle for company hire, and company B (which you also you own) hires that vehicle; is this an acceptable tax arrangement?
                Maybe I'm being a bit thick, but why?
                What benefit could there be with another company owning the asset? You're being far to obtuse with the details of your (what looks to be) scam.
                See You Next Tuesday

                Comment


                  #9
                  Company cars B2B

                  Originally posted by Lance View Post
                  Maybe I'm being a bit thick, but why?
                  What benefit could there be with another company owning the asset? You're being far to obtuse with the details of your (what looks to be) scam.
                  The asset can be depreciated and that helps towards business costs/taxes.

                  Used to work with a contractor who hired a car on a monthly basis for business use only, and the business paid for the hire costs and fuel costs.

                  Which is why it got me thinking, why not own the other business!

                  Company A is paying for all the servicing and insurance, road tax etc.

                  Company B is paying the hire costs and the fuel.

                  So every aspect of motoring is paid out of business A and business B.

                  The cost implications are the costs of managing business A. But with a lean business model, it should stack up?
                  Last edited by PurpleGorilla; 16 August 2017, 10:24.
                  http://www.cih.org/news-article/disp...housing_market

                  Comment


                    #10
                    Company A would have to hire out the car to B at a commercial rate ( not £1 a day ) and therefore make a profit. Which of course would be taxed.

                    If HMRC took a close look and decided the whole Company A/B structure was simply a ruse to minimise tax then the directors of A&B would be in a hole.


                    Just buy the bloody car and stop trying to avoid paying your dues.

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