Using a Vehicle for Business – Pt 2
Mr. Murphy is a sole trader and uses his car 100% for business – his wife’s car is used for all personal travel. Mr. Murphy wants to change his car and contacts us before doing so. We ask Mr. Murphy what type of car he likes and he says that he has always wanted a BMW 5 Series!
We advise Mr. Murphy to go for a post July ’08 2l diesel model as it has low emissions – he buys a 2008 BMW 5-Series 2l diesel for €10k – as this is a low emission vehicle it has a deemed cost of €24k for Income Tax purposes (regardless of how much he actually pays for it) – this means he will save €12k tax over the next few years – not only does he get the car for free – he will actually make €2k!
This is an example of how to get it very right and shows the benefit for Mr. Murphy of ringing us BEFORE he changed his car. In tomorrow’s article we will tell you how Mr. Murphy could choose to buy a €55K luxury SUV for only €22.5k!
This series of articles are for illustrative purposes only and do not constitute professional advice. To make an appointment to discuss any of the issues raised in these articles and the services we provide please e-mail firstname.lastname@example.org. Article 3 will be posted tomorrow.