Financial/Accounting types, a moment please

rodfarva · Postby **rodfarva** » April 16th, 2010, 3:31 pm

Didnt know the answer and now im curious myself... I asked around but no one seems to be able to give a definitive answer

can a sport car/coupe (2door) be acquired a company purchase? (ie VAT reclaimed?)

It doesnt fall under the typical company car type, but all the same, the car is intended for an employee as a company vehicle.

any info would be appreciated

slow323 · Postby **slow323** » April 16th, 2010, 3:40 pm

im not an accountant but i dont think you would have a problem once the

car is bought in a company name and the company name is on the

insurance

type of car is not going to be a problem because most managers ,directors,

busniess owners do this to re claim their vat also if the car is being financed

in the company name, the interest on monthly payments is a tax deduction

Freelander · Postby **Freelander** » April 16th, 2010, 3:41 pm

they have guys up here that claim STIs as commpany cars

just thought i would add that useless piece of info to ur thread

rodfarva · Postby **rodfarva** » April 16th, 2010, 3:48 pm

Well, i was thinking the same... that it shouldnt be a problem...

Maserati · Postby **Maserati** » April 16th, 2010, 3:48 pm

Freelander wrote:they have guys up here that claim STIs as commpany cars

just thought i would add that useless piece of info to ur thread

which ones..i wanna work for them

Computerman · Postby **Computerman** » April 16th, 2010, 3:48 pm

rodfarva wrote:Didnt know the answer and now im curious myself... I asked around but no one seems to be able to give a definitive answer

can a sport car/coupe (2door) be written off as a company purchase? (ie VAT reclaimed?)

It doesnt fall under the typical company car type, but all the same, the car is intended for an employee as a company vehicle.

any info would be appreciated

A Company is an entity which and can own pretty much anything it wants (although restrictions do exist). What do you mean by "written off"?. The new KIA Cerato comes in a Coupe version (called the Koupe). I see no problem with a company owning a coupe.

drunkenscorpion · Postby **drunkenscorpion** » April 16th, 2010, 5:21 pm

Yes, the car can be puchased as a company vehicle and VAT be claimed on it while filing the company returns.

The catch in it really is in the accounting for it as a BIK, or Benefit In Kind. A value must be apportioned to the person driving the vehicle, if it is used after working hrs, i.e. used to go home with. This Benefit should be deducted from his emoluments as a BIK.

It is in this reasoning, that the smart directors of some larger conglomerates prefer less expensive vehicles to drive.

xr8id1968 · Postby **xr8id1968** » April 19th, 2010, 2:52 pm

drunkenscorpion wrote:Yes, the car can be puchased as a company vehicle and VAT be claimed on it while filing the company returns.

The catch in it really is in the accounting for it as a BIK, or Benefit In Kind. A value must be apportioned to the person driving the vehicle, if it is used after working hrs, i.e. used to go home with. This Benefit should be deducted from his emoluments as a BIK.

It is in this reasoning, that the smart directors of some larger conglomerates prefer less expensive vehicles to drive.

Agreed. Benefit In Kind is in main calculated as the cost to rent such a vehicle. Tax is then calculated on the rental figure and deducted from one's salary.