No disrespect to the OP but everytime someone comes up with a scheme like this I can't help thinking it's not going to work. Cleverer people that us have had plenty of time to look at these and bearing in mind we never hear any more about them speaks volumes. I think the answer to this and many of these schemes is down to the individuals appetite for risk. If you want to sail close to the wind it might work. If you want to work it out on paper with no associated interest it won't.
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Company cars B2B
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Originally posted by PurpleGorilla View PostThe 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?
A depreciating asset is only any good if you're making a profit. So why not own it in company B?See You Next TuesdayComment
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Originally posted by tomtomagain View PostCompany 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.
But all the motoring costs are largely offset against corp tax.Comment
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Originally posted by Lance View PostStill don't get it.
A depreciating asset is only any good if you're making a profit. So why not own it in company B?Comment
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Originally posted by PurpleGorilla View PostCompany A makes a profit. It is a scalable business.
Tell us how you get on.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostNo disrespect to the OP but everytime someone comes up with a scheme like this I can't help thinking it's not going to work. Cleverer people that us have had plenty of time to look at these and bearing in mind we never hear any more about them speaks volumes. I think the answer to this and many of these schemes is down to the individuals appetite for risk. If you want to sail close to the wind it might work. If you want to work it out on paper with no associated interest it won't.
The people that thought up the scheme are long gone.
Unless it is you who thought up the scheme then its COP9 time.Comment
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Originally posted by BrilloPad View PostThen HMRC come along and turn you inside out.
The people that thought up the scheme are long gone.
Unless it is you who thought up the scheme then its COP9 time.Comment
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Originally posted by PurpleGorilla View PostIt's not a scheme. It's a B2B model that shares all business motoring costs, fully tax compliant, and profit making.
Just make sure you keep enough money offshore to be one step ahead of HMRC.Comment
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So, the next step is that company A puts a high depreciation value on the car and after 1 year sells it. Perhaps the director of company B buys the car for 25% of its value as a private car.…Maybe we ain’t that young anymoreComment
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You could ask Chris Moyles for some advice. He's got form with cars and tax...
https://www.theguardian.com/media/20...-tax-avoidance
Isn't this what you are trying to do?
http://www.optimiseaccountants.co.uk...d-tax-reliefs/'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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