BIK on company car

[danruttle]

with ridiculous taxation on company cars these days my question is this:

based on a Land Rover Discovery 4;

i calculated on comcar website my tax would be £636/month but my idea is this:

if the company purchased the car for say £35000 then sold it back to me on HP privately for say 6 years with me paying £486/month is there any BIK involved?
obviously this would be the case if i walked into a dealership but is it any different if its my own company i buy it from?

[SteLacca]

It would depend. Unless you are paying interest to your company included in the £486 per month, HMRC will suggest that you have a tax-free loan, which attracts a benefit in kind all by itself. If you do pay interest, then of course corporation tax will be payable in the interest by the company. If interest paid to the company is the same as interest paid by the company, then corporation tax relief on the interest will be cancelled out by the corporation tax charge on the interest.