But surely you can discard the 15k miles per year for business also, as that £23k would have been also claimed regardless of this car or any other car. Just by using the same logic.
JLR vehicle subscription
- Thread starter danielanthony
- Start date
But surely you can discard the 15k miles per year for business also, as that £23k would have been also claimed regardless of this car or any other car. Just by using the same logic.
This is the most insane man maths I have seen for some time. Congratulations, sir.
Soldato
Isn't it 10k business before the rate drops anyway.
Soldato
Yup, drops from 45p to 25p IIRC. But his maths include that.
Yes, but the figures are still right, even if the idea is worrying stupid. 10k at 45p (£18k) and 5k at 25p (£5k). This feels like when someone at the pubs rocks up in their new X3 and tells you how it's only costing £11k, paid for with a COVID bounce back loan... Tip, ignore those people
Soldato
It's also amusing that he's claiming it as income from the business he owns, so ultimately it's in lieu of other salary or dividends (tax free though of course).
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
If that's the case (claiming from own business) then, as you say, at most it's only his marginal income tax rate that he's saving on that figure of £23k, so up to £10'350 saving (+NI). But he's unlikely to be an additional rate tax payer if he's self employed as you'd have to be insane to pay yourself in such an inefficient way if you're self-employed. So if his tax is nice and efficient otherwise, and he is indeed self-employed, the realistic alternative would be to take the money out of the company as dividend payments @ 7.5% tax which would result in a tax liability of £1725. So it's really £664pm if those assumptions are correct and you factor out the man maths.
Last edited:
My PCP costs £550 a month, but I earn more than that, which makes it free.
Yes - but the original point that value (a 50k x3 versus 100K x5) is in the eyes of the beholder; the market, or other thread contributors, might say the latter is a more prestigious, nicer place to be, but that is subjective.
The original add doesn't mention the covid elephant in the room, but a 3 month commitment possibility, does, sound like a feature they will have to add, non-punitively into pcp/pch
The original add doesn't mention the covid elephant in the room, but a 3 month commitment possibility, does, sound like a feature they will have to add, non-punitively into pcp/pch
Not really no. The calculation is what would the new car cost me. Not how much I'd be better off by sticking with current vehicle.(because that wasn't an option)
We can add in the calculation for Fuel
15k miles@ avg 35Mpg = £1900 fuel x 4 =£7600 + PCP - Mileage reclaim = 18,200 over the 4 years or £380 a month without servicing etc
Nearly. If you were a business user able to make use of the mileage reclaim you could claim £6500 @20k miles a year leaving you just £100 short.
Last edited:
I already do that. Fuel is obviously still part of the cost, though. I'd also be able to claim £6.5k if I drove a £200 Corsa.
But in this hypothetical example..
Who are you claiming the £6500 from? Your business.
Who owns the business? You do.
So really where does that £6500 come from? You.
So you're not really getting £6500, you're actually just gaining the difference in tax between taking that £6500 as a dividend or a salary and taking it as tax free mileage expenses.
However if he used his vehicle for the business of his employer (so NOT his business) he could also claim the same mileage allowance tax free
We're talking about you though, right? Who are you claiming the mileage allowance from if it's not your own business?
That was in reply to fox who was quoting me quoting another scenario
Yes it one of my Companies.
Soldato
- Joined
- 4 Apr 2003
- Posts
- 7,977
@mattyg if I have read this thread correctly, you are a business owner.
You pay yourself a salary and don't structure as a company car/car allowance but do claim mileage.
Assuming you have a strong turnover and cashflow with reasonable liquidity and/or credit you can draw down against; then amongst a number of other legal mechanisms, your approach is a pragmatic way to take cash out of the business tax efficiently for your benefit.
The value of the vehicle is irrelevant if your are maximising value taken from your business. What is relevant is the health of your business.
You pay yourself a salary and don't structure as a company car/car allowance but do claim mileage.
Assuming you have a strong turnover and cashflow with reasonable liquidity and/or credit you can draw down against; then amongst a number of other legal mechanisms, your approach is a pragmatic way to take cash out of the business tax efficiently for your benefit.
The value of the vehicle is irrelevant if your are maximising value taken from your business. What is relevant is the health of your business.