Possible Newbie!

[MSLRS5]

Hi Guys,

I' ve been studying this forum for a while now and thought I'd made up my mind to take the jump into RS4 territory.

I've secured the vehicle-2006 "56" Avant in Phantom with all the usual bits plus solar roof,tv,buckets etc...just one owner and only 4000 genuine miles....truly is in mint condition. It's a private sale and it's his third car so no longer has the space to keep it. I've spoken to the original supplying dealer and also H.P.I'd it...all stacks up. Decent price too. I'm suposed to be collecting at the weekend.

Here's the problem. I'd origionaly planned to have this car as an employee..I have an understanding boss..and we were going declare a "lesser" vehicle on the tax returns so as not to pay the huge £600 per month company car tax bill. Unfortuantely our accountant has scared us off this idea by saying recent investigations by the inland revenue have led to huge fines and criminal prosecutions. Guess I should have investigated this further before getting my heart set on this car!

So my only option is to come out of the company car scheme and try and buy and run this car myself. I'm trying to work out the finances on this coming from a A4 2.0Quattro DTM with 220bhp. The current car returns 29-34 MPG so I'm expecting 19-25 from the RS4. I'm allowing £400 for tax,£1000 for tyres and £600 for a service. As I'm doing about 15,000 miles per year I would hope that a car with that low mileage shouldn't require too much else.

I'd also like any guestimates as too what you think the car would be worth in 3 yrs time with 50,000 miles on it.

So guys....do I go for it and worry about the consequences later...or do I play safe-stick to the company car scheme and get an A4 3.0 Quattro Avant-Diesel

Thanks for any advice you might have.

[aidanjaye]

Pick my car up tomorrow - much the same spec as yours.

Have decided on running it for a year and seeing what the costs are - after all , you only live once (and desiels are boring)

[MSLRS5]

Pick my car up tomorrow - much the same spec as yours.

Have decided on running it for a year and seeing what the costs are - after all , you only live once (and desiels are boring)

I'm tempted to do the same but imagine i'll get shafted on the finance since they tend to be interest loaded at the front end.

Hope you enjoy the new motor.

[aidanjaye]

The new S4 may be a bit cheaper to run...although you'd be looking at a demo and will pay full price..

[Nipper]

MSLRS4, I can't believe that you'd even consider trying to falsify a declaration to HMRC. In fact I'm astounded that you and your boss even considered it.

Just pay your taxes like everyone else, or suffer the consequences. Tax evasion is a criminal offence with potential custodial sentances, so not really worth it.

[NGS521]

MSLRS4, I can't believe that you'd even consider trying to falsify a declaration to HMRC. In fact I'm astounded that you and your boss even considered it.

Just pay your taxes like everyone else, or suffer the consequences. Tax evasion is a criminal offence with potential custodial sentances, so not really worth it.

Become a sole trader and have it all (- personal use) tax deductible. There are lots of legal ways to avoid tax.

Nipper do you ever speed? I'm pretty sure it's an offence with potential custodial sentances.............

[MEV]

MSLRS4, I can't believe that you'd even consider trying to falsify a declaration to HMRC. In fact I'm astounded that you and your boss even considered it.

Just pay your taxes like everyone else, or suffer the consequences. Tax evasion is a criminal offence with potential custodial sentances, so not really worth it.

Oh please! For a moment there I thought I'd accidentally logged onto a freaky "tax is the cure" site! With that kind of hardware listed on your sig, I’d be v shocked if you have never strayed the wrong side of law on occasion! If you haven’t please sell me your next car, Vicar!

Go self employed fella and push the legal boundaries to the max. Lots of loop holes out there to get your car included the tax deductibles. Any reasonable accountant worth his pinch should be able to advise.

[lengster1]

Limited companys are £50 and a good accountant will keep tax down to 10-15%,we pay far too much un avoidable tax as it is proping up all the scroungers!!!!!!!

[MSLRS5]

Well guys thanks for the comments...Nipper- I've been paying company car tax for the last 15 years so it's not like i'm a seasoned criminal !

However I see your point and I wanted to do things correctly so I've come out of the co.car scheme and picked up the car last night.

I had high expectations but man does that thing shift...sounds absolutely gorgeous too

Still getting to grips with the new seats and size of the avant but this thing makes that DTM look like it was going backwards. Hats off to the previous owner he has made this car feel like a "2 and a half year old brand new car"

Averaged 24 mpg on the motorway back from Croydon so no doubt that'll drop a bit when I get it on the twisty bits.

Looking forward to going through the manual later

[Nipper]

MSLRS4, glad you've decided to go ahead with the purchase outside of your Co car scheme. I didn't mean to be partronising, but as an employee you have limited options.

For all you guys out there that are self employeed, you have several ways to manage your tax liabilities all within the law. There's a big diference though between tax avoidance and tax evasion. No accountant will ever condone the later.

[pad125]

On the car tax/company car thing; if you have a 'sympathetic' boss see if you can negotiate an increase in your basic salary, say £5k that will of course be taxed. You then claim £0.40 for the first 10,000 miles and £0.25 there after, tax-free.

Therefore the net to you would be:-

Salary increase £3000 (assuming 40% tax rate)
First 10,000 miles @ £0.40 equal to £4000
And as a further 8000 miles @ £0.25 equal to £2000

Total per annum after tax £9,000.00

This assumes you can talk your boss into the scheme but don’t forget how much he is spending providing you with a car and the risk with regard to servicing/repairs, at least this way he can budget for your costs more accurately.

Your job depends on whether you could claim 18k miles a year (don’t forget it will be the tax man you’ll have to convince if you get investigated)

Good Luck

[MSLRS5]

Nipper-No offence taken...I think I was pushing the boss into something he wasn't comfortable with anyway.

Glad that I've gone with the self funding route...it's nice to know that the shiny car in your driveway is your own and can't be withdrawn if your sales performance is down for a few weeks.

Thanks also for your advice Pad125.

Looking forward to being an active member of the forum.

[RocketShip4]

If you don't drive like a lunatic all the time you can get higher 20's out of the car. I do frequently. And I'm under 50 before you ask!

[booski]

If you don't drive like a lunatic all the time you can get higher 20's out of the car. I do frequently. And I'm under 50 before you ask!

Impossible!!

[Oli]

My wife drive my car the most, and the average is 17!!! Don't be fooled. To get 25+mpg, is 60mph driving - BORING