D
DeKen
Guest
Hi guys, self employed the last year as an IT contractor with a private limited company, 2 directors, me as secretary etc.
Decided recently with the offer of a contract on the far side of the country it was time for a new reliable car. But circumstances have changed since I bought the car two weeks back. Contract on the far side of the country is now looking unlikely whereas current contract has offered a renewal into next year.
Current contract that is local is just down the road from me so my mileage is going to be non existent thereby putting the BIK back up to 30%.
So the question is this. As it no longer makes sense financially to have the car as a company asset could I change it to a company loan instead, switching the car to my name, pay insurance/tax myself and just deduct the repayment amount per month from my salary?
Not that familiar with taxation so just not sure if this is ok. I know from when I was working permanently previous companies often set up company loans for staff so unsure if this would be different?
Any advice if this is ok or why it's not would be really appreciated!
Cheers
D
Decided recently with the offer of a contract on the far side of the country it was time for a new reliable car. But circumstances have changed since I bought the car two weeks back. Contract on the far side of the country is now looking unlikely whereas current contract has offered a renewal into next year.
Current contract that is local is just down the road from me so my mileage is going to be non existent thereby putting the BIK back up to 30%.
So the question is this. As it no longer makes sense financially to have the car as a company asset could I change it to a company loan instead, switching the car to my name, pay insurance/tax myself and just deduct the repayment amount per month from my salary?
Not that familiar with taxation so just not sure if this is ok. I know from when I was working permanently previous companies often set up company loans for staff so unsure if this would be different?
Any advice if this is ok or why it's not would be really appreciated!
Cheers
D
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