Using a Vehicle For Business – Pt 6
Tax Implications of Using a Vehicle for Business – Article 6 of 7
In article 1 we met the unfortunate Mr. Jones who bought a lovely 2006 Mercedes S-Class for €10k through his Ltd. Co. and was faced with an annual tax bill of €20k BIK on a car that cost €10k!
What if Mr. Jones still wants his 2006 Mercedes S-Class but wants a more tax efficient way of doing things? Well, let’s assume that Mr. Jones does 25,000 business km travel in his car each year. If he buys the car in his personal name rather than through the company he could be claiming €9k p.a. tax free mileage allowance from his company – all he has to do is keep records in the prescribed manner and claim at the civil service mileage rates per km – that would be a far better solution and shows the benefit of ringing us BEFORE buying the car!
In our final article tomorrow we take a look at Electric Cars.
This series of articles are for illustrative purposes only and do not constitute professional advice. To get in touch please e-mail dave@fhm.ie.