You know this isn’t remotely true or right m8, don’t you? Not saying you’re lying btw, but he’s spinning you a bit of a line here. He pays tax on profit made, then he can claim a percentage of the value of the car Against that profit, the car remains an asset of the business, he has to account for that if and when he disposes of it.
Don't think anyone is saying you are lying, but either your mate is lying to you (or something's got lost in translation), or he's committing tax fraud. There is literally no third option. What you've said isn't legal.
I don't know if it still applies, me having been retired for some years but it used to be possioble to reduce a COMPANY tax bill by buying up an insolvent company that had large tax losses. Oddly these losses might well have been their only asset Just goes to show. You make a post, quote an example that's been told to you and that example takes over the thread and you are suddenly promoted to being a Taxation Specialist. You have my sympathy. What I know is that The Treasury is constantly trying to close Tax Loopholes while Accountants are constantly trying to find new ones. But The Treasury is made up of Politicians and Senior Civil Servants, both 'professions being well insulated from the real World. Tax specialising Accountants on the other hand are well adapted to the real World, in fact I wouldn't be shocked to hear that some of them are former Estate Agents, kick out of that profession for being too devious. It's a battle that the rest of us should not get involved in.
I hope the whole thing comes tumbling down like a house of cards mate. Nothing more than the clowns running the club deserve (although how much of it is clownish behaviour is unclear to me, if you know what I mean)
