• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

What happens to my LTD (Car, equipment) when I move to IR35?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #21
    Originally posted by mudskipper View Post
    Assuming the changes come into effect, the 5% allowance disappears.
    Well, unless you have a contract with a small company, if this the case you can decide on whether you are inside or outside, and if YOU decide you are inside THEN you will get the 5% expenses (as per JB’s post earlier).

    It sounds bizarre to me, but there you go...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #22
      Originally posted by cojak View Post
      Well, unless you have a contract with a small company, if this the case you can decide on whether you are inside or outside, and if YOU decide you are inside THEN you will get the 5% expenses (as per JB’s post earlier).

      It sounds bizarre to me, but there you go...
      Right, it is bizarre in its complexity, which is why this small company exemption won’t last, IMHO. They will want to end up with a single-tiered system.

      Comment


        #23
        Couldn't the car leasing costs could be offset against prior profits made by the company while contracting outside IR35?

        So if you stop earning income part way through your company financial year, but you're still paying the leasing costs, would think you'd still count the costs against prior profits within your company, and could even do a carry back of a year (not sure if you can do more) if your lease carried into your company's next financial year (so your losses due to car lease, etc. would carry back against profits the prior year).

        Not an accountant though so definitely one to check with yours!

        Comment


          #24
          Originally posted by lifexplorer View Post
          Couldn't the car leasing costs could be offset against prior profits made by the company while contracting outside IR35?

          So if you stop earning income part way through your company financial year, but you're still paying the leasing costs, would think you'd still count the costs against prior profits within your company, and could even do a carry back of a year (not sure if you can do more) if your lease carried into your company's next financial year (so your losses due to car lease, etc. would carry back against profits the prior year).

          Not an accountant though so definitely one to check with yours!
          Provided you have enough money in the company to pay for the lease as well as the usual taxes.
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

          Comment


            #25
            Originally posted by cojak View Post
            Provided you have enough money in the company to pay for the lease as well as the usual taxes.
            Difficult to see how it would not be a BIK - your business mileage is no longer an allowable expense.

            Comment


              #26
              Originally posted by mudskipper View Post
              Difficult to see how it would not be a BIK - your business mileage is no longer an allowable expense.
              Ouch! I’d forgotten that.
              "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
              - Voltaire/Benjamin Franklin/Anne Frank...

              Comment


                #27
                at least with an electric motor the BIK wont be quite to bad

                Comment


                  #28
                  Originally posted by CanPayButWouldRatherNot View Post
                  at least with an electric motor the BIK wont be quite to bad
                  Not sure if it will be that simple - it’s a business asset being used purely for personal use.
                  The insurance for it will need to be purely personal use.
                  Check the lease to see if there is restrictions on mileage and the type of mileage.
                  And if it’s a car where you’ve claimed 100% of the VAT back saying it’s purely for business use, you might find you’ll owe at least 50% of the VAT to HMRC.
                  …Maybe we ain’t that young anymore

                  Comment


                    #29
                    But isn't there that old catchall that you are still working on the business but still have no sales. They'd have to go in to exact journeys etc to prove. Quite a grey area and some attitude to risk plays.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      #30
                      If you have the funds in the company to cover the lease, it may be worth doing an inside contract as a PSC, rather than umbrella. Then, it's clearly a legit BIK.

                      Comment

                      Working...
                      X