@josh.thomas: Is a Lambo tax deductible? 🤔 There’s 3 main ways we can claim for the purchase of vehicles within a limited company. Please note, that leasing or renting vehicles are treated differently 🏎️ To claim for 100% of the cost in the first year of purchase what’s known as ‘first year allowance’ the vehicle must be deemed as ‘commercial’ or have CO2 emissions of 0g/km ✅ To qualify for the main rate pool meaning 18% of the cost can be claimed per year, the vehicle must have CO2 emissions of 50g/km or less ✅ If the vehicle has CO2 emissions over 50g/km it will fall into the special rate pool and only qualify for 6% of the cost to be claimed per year ✅ A Lamborghini sadly falls into option 3, and therefore isn’t as tax efficient as some might like to imagine 😬 Please note, if the vehicle is deemed to be ‘commercial’ and meets all the relevant criteria you can qualify for first year allowance regardless of the CO2 emissions 🎯 The benefit in kind rate, as well as other potential costs need to also be considered here when tax planning around the purchase of company vehicles 🙏🏻 This reel is purely based on purchasing this vehicle through a limited company, different structures have different rulings 👌🏼 What do you think of the system HMRC use to tax company cars? Is it excessive? Let me know in the comments 👇🏻

Josh Thomas

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Region: GB

Sunday 27 October 2024 08:22:29 GMT