 | Home > General & Technical (L663) > Crazy not to go Hard Top Via Ltd |
 
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| Crazymind Member Since: 11 Jun 2024 Location: Glasgow Posts: 145  
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I choose pcp. Company paying miles for the use of personal car. It’s roughly 8K the company is refunding me for the use of the car for business purpose.
It’s not repaying the monthly pcp payment, it’s probably 20% off at the end of the year but I am happy with it. I Pick the car I want with the spec I want and end of the day it’s not a company car with related BIK and it is almost paid in full. Company will deduct the cost of running my own car. Looking forward to other more efficient way of buying a car through my company’. Ideally I want a G wagon 🤣. |
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9th Nov 2024 5:07pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2781
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Couple of things to be aware of.
Be careful converting a Hard Top by installing rear seats, at the very least you need to tell your insurance. HMRC may also take a dim view of it. You're effectively turning it into a Double Cab. The law has also just changed again on double cabs, they were given a reprieve last year but it's been reversed. Have a look at the test cases of people fitting occasional rear seats in VW Transporter vans. The Commercial Defender attracts BIK of £700. However there appears to be a bit more to it than that. The taxable amount on the vehicle is £4,000 but it appears this also comes off your personal allowance so (with the latest budget changes) generates a few hundred pounds of extra NI payments. You need to check it with your accountant. My tax/NI payments have jumped by over £1,000 since l bought my 90 Hard Top and that's in addition to the extra £1,000 payable after April 2025 due to the allowance being reduced in the budget. |
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9th Nov 2024 5:32pm |
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| Davedig Member Since: 18 Feb 2024 Location: England Posts: 20 
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I didn’t think the defender was affected by the budget changes regarding BIK etc? I thought it was just double cab pickups ie 5 seater commercials would be no more?
I considered going 110hardtop and having rear seats, but like you say they are abit of a poor fit compared to factory and prices I’d seen were around 7k for the conversion! I opted for a 90HT with jump seat , I need the load space anyway, but at least with two space seats I can still use it to pick the kids up from school etc. |
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10th Nov 2024 6:46am |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2781
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BIK isn't affected by the budget, it's still a very good deal particularly if you are VAT registered.
But the £4,000 that the Defender is taxed on for BIK appears to have been included in the personal allowance before you start paying NI. And the govt have reduced the allowance for LTD company directors from around £10,000 down to £5,000. What this means is you pay NI on the £4,000. This only applies if you are a one man or woman LTD company. lf you've got staff then there's an increase in another allowance to offset it. |
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10th Nov 2024 9:12am |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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The 110 commercial only has a 800kg payload. It gets commercial status (and ability to reclaim vat and reduced BIK) by not having rear seats.
Current rules allow double cabs these exemptions, only if they have a payload of over 1000kg. Converting a commercial to 5 seats therefore invites the tax man to get his vat back and tax you personally on a 'car' worth £60k. Any capital allowances for buying a 'van' (ie 100% of its cost in the 1st year) would also be at risk  |
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10th Nov 2024 10:09am |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2781
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You'd be basically relying on the tax man not finding out. And they probably won't. But if they did, you'd find yourself with one heck of a tax bill.
ln that respect you might possibly be more likely to get away with "occasional" rear seats that are a basic bench seat for emergency use. Also if you didn't refit the rear windows. You'd definitely need to tell your insurance because if you were to be involved in an accident you wouldn't be covered. |
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10th Nov 2024 1:08pm |
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| billy2shots Member Since: 23 Oct 2024 Location: England Posts: 26
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As I thought, more hassle than it's worth then, plus as a family car, the drawbacks outweigh potential tax savings.
Thanks everyone |
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10th Nov 2024 2:08pm |
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