Drago
Legendary Member
- Location
- Suburban Poshshire
What, his accountant that works down the cycle shop?I'd ask the accountant you'll presumably be engaging when you need to start doing self-assessment about the rules & regs
Purchasing a bike through the company for VAT purposes - creative accounting?
- Thread starter nickAKA
- Start date
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Most small business owners would earn more working for a company or public sector, more should have a go and find out what it is like, bit angry as I just had another small business go bankrupt on me this moring oweing over £1,000.
OP
OP
nickAKA
Über Member
- Location
- Manchester
No I didn't - I asked if there was a legit way of buying a bike, saving tax using the existing tax system rules on self assessment, much in the same way as I can on PAYE using C2W, for exactly the same purpose. Maybe the choice of words could have been better; "tax efficient" would work but that's a pretty loaded phrase.
You're entitled to your opinions & "morality" but don't get your kecks in a bunch and start accusing me of things that A) I haven't said and B) I haven't done. And why the fanciful assumptions about my financial situation and the ad hominen grief? WTF is that all about?
I should have known better really, I must have seen variations on this argument on message boards hundreds of times down the years. New experience being the one being on the 'wrong end of it' tbf
Anyway, stop worrying about it, I'll ask the accountant when the paperwork goes through. He's a straight-down-the-line type so rest easy, I'm sure it'll all be above board and the tax man will be fine.
bikingdad90
Guru
Get your creditors claim into the administrators in order to get half a chance of getting some money back from the company from any remaining cash and proceeds of assets sold.
Nothing there, it has happened a few times in the past.
fossyant
Ride It Like You Stole It!
- Location
- South Manchester
Also Qualified Accountant.
But, you know these 'partners' and business owners are a dodgy lot also. I was Financial Controller of a 'big' business owned by two brothers. We had to go along with a few dodges, but most of it ended up on their P11D - like one used to fill his 4x4 from the truck pumps out back, or the other that was buying property (that went through tax - we needed a big firm of accountants to help). One of the bosses more or less permanently had one of the weekly staff permanently at his house, and some of the building materials weren't for our jobs, if you know what I mean. It was a £200m company, and if we could 'trace it' it went into Directors loans, if we couldn't trace it, then who knows where it went !
My wife's worked for some dodgy lot, where the benefits (cars/TV's/ upgraded car info-tainment/'holidays' etc etc) went via the directors loans,
then the tax paid via the company (for the director) again via directors loans.
mr_cellophane
Legendary Member
- Location
- Essex
I used to work through a one man limited company. My accountant let the company buy a bike. However, it had to be a pool bike and available for anyone who worked for the company to use. It could not be for personal use at any time and any sundries (except clothes), insurance, lights, service, etc could be put through the books.
I was the only employee, so only for my use was not a problem and I'd like to see the tax man prove that I went out for a pleasure ride on Sunday. Decent set of lights on the company and spare mounts for other bikes paid from my own pocket.
I bought two this way, with three years between them.
I was the only employee, so only for my use was not a problem and I'd like to see the tax man prove that I went out for a pleasure ride on Sunday. Decent set of lights on the company and spare mounts for other bikes paid from my own pocket.
I bought two this way, with three years between them.
mr_cellophane
Legendary Member
- Location
- Essex
I stopped paying myself a salary or dividends for 2 years for the same reason. I just took a few director's loans when the need arose.
The OP is looking not at avoidance but evasion by manipulating the rules
No doubt what you did was legal , but equally no doubt that it was immoral.
mr_cellophane
Legendary Member
- Location
- Essex
Before I set up my own company, I was working for the man paying around £28k a year in income tax. I looked at it as levelling out.
winjim
Straddle the line, discord and rhyme
It's only the extremely wealthy who seem to have the ability to do these tax dodges and such, isn't it? Funny that.Before I set up my own company, I was working for the man paying around £28k a year in income tax. I looked at it as levelling out.
mr_cellophane
Legendary Member
- Location
- Essex
extremely wealthy ? not me, just careful with my money.
vickster
Squire
You must've been earning a solid amount to pay £28k income tax however (£100k a year?)
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I like Skol
A Minging Manc...
- Location
- Sunny Ashton-under-Lyne
It's a fair point. Many people earn less than the mentioned tax bill. Quibbling about the tax bill for that amount seems a bit unreasonable. I'm not complaining about someone earning the amount needed to generate that tax liability, but to complain and 'cheat' because of the tax when your job/earnings put you in such an advantaged position is bordering on immoral.
