RS2 as a company car

[garethjones]

Does anyone have any experience of running an RS2 through their company? My accountant is telling me that if I do this I will be taxed at 32% of the cars new value each year! This equates to tax on around 10K each year! It is 4 x times cheaper to go a buy a new golf GTi and run that instead. If my accountant is correct this makes no sense! Any advice on how I might do this is welcome.

[DickyC]

Richard Branson did it with Bristols years ago. The difference was that the Bristols were VERY old and their price new was a lot less than a contemporary tin box. When RS2s are very old it may make economic sense. What were they new? £45,000? That still won't buy you 4 new Golfs.

On the other hand, Revenue and Customs would probably allow you to write off a proportion of the value of a company car every year, when in fact an RS2 may well be going up in value - as with Branson's classics. The other drawback is the company owning your pride and joy. Don't you have to have no smoking signs in company cars now?

On balance, at present, with an RS2, it may not be viable.

Ask your accountant about claiming mileage instead. I think that just goes by engine size.