OK, imagine: you drive a luxury car that has class and charisma. Customers look back, your business gets a boost and you keep more money. Sounds too good to be true, yet it is not. Thanks to the Youngtimer scheme you can get tax relief with a car 15 years old or older. And that means a lower additional tax rate, meaning you pay less tax. So you can drive in style without it costing you extra money. We explain.
What is the Youngtimer scheme?
In short, the Youngtimer scheme is a tax benefit for cars from 15 to 40 years old. Here, you do not pay an additional tax on the new value, but on the daily value. And that really saves a lot of money!
Imagine: you are driving a vintage designer item. It has old-world charm, exudes luxury and has a story. But you drive it for a much lower price. For business owners who drive for business, this is a smart choice: lower costs ánd a nice car. A Youngtimer may be a bit older, but it still remains a beautiful strong presence on the road.
Additional taxable benefit for Youngtimers: how does it work?
If you also use a company car privately, you have to pay an additional taxable benefit. That addition is calculated as a percentage of the value of your car. And here comes the big difference: with a new car, you pay 22% addition on the catalogue value, while for a Youngtimer the addition 35% is, but then calculated on the car's daily value. That makes a huge difference in cost!
Example:
With a new car With a list value of €50,000, you pay 22% additional tax. That amounts to €11,000 gross per year. If we include tax (37.05%), you pay a net €4,075 per year in additional taxes.
In the case of a Youngtimer with a daily value of €10,000, you pay 35% additional tax. And that amounts to €3,500 gross per year. After tax (37.05%), you pay a net €1,296.75 per year in additional taxes.
Your savings?
The difference between the additional taxable benefit of a new car (€4,075) and a Youngtimer (€1,296.75) is €2,778.25. You pay this amount less in tax with a Youngtimer. That's money you can invest in your business or use for yourself.
How do you check the daily value of a Youngtimer?
The difference between the additional taxable benefit of a new car (€4,075) and a Youngtimer (€1,296.75) is €2,778.25. You pay this amount less in tax with a Youngtimer. That's money you can invest in your business or use for yourself.
- Online tools: Make use of useful websites such as the ANWB Koerslijst and Marktplaats to quickly get a good overview of the value of your car. These tools help you get a reliable indication of what your car is worth without having to go anywhere.
- Appraiser: Consider hiring an appraiser to draw up an official report on the value of your car. After all, this could come in handy if the tax authorities ever ask for additional proof or when you want to sell the car. This way, you will always have a solid document in your hands.
- Dealers/advertisements: Look for comparable models at dealers or on classifieds sites. This will give you a good idea of the current market value and help you set a fair price. By comparing different ads, you will know exactly where you stand.
Why entrepreneurs love the Youngtimer scheme
- Paying less tax: It sounds obvious, but it really is. Thanks to the Youngtimer scheme, you pay less tax than with a new car.
- VAT benefit: Everything you buy for your Youngtimer, from maintenance to petrol, is deductible. And that can give you quite a tax break.
- Depreciation? It is over: With a new car, you quickly lose value, but a Youngtimer has already had its peak. This means you don't have to worry about losing value quickly.
- Business deductions: From road tax and parking costs to fuel: you can deduct everything. And that's how you keep more money for your business.
What to watch out for
- Maintenance: Older cars sometimes require a little extra care. So choose a reliable model and set aside a budget for maintenance. That way, you won't face any surprises.
- Environmental zones: Not every city is equally friendly to Youngtimers. Before you leave, check that you can drive at your destination without any problems.
- Fuel: Yes, old cars consume more than a new electric car.... But hey: you do drive in style and with character!
- Technology: Don't expect advanced Tesla features, but the basics are well done. You have everything you need to drive nicely.
Popular Youngtimers among entrepreneurs
So, want a car that exudes style and status? Then check out these classics:
- Volvo V70: Space, comfort and that Scandinavian calm.
- Mercedes-Benz E-Class: Undeniable luxury, always.
- BMW 5-series: Driving pleasure combined with powerful looks.
- Audi A6: Perfect balance of comfort and class.
Is the Youngtimer scheme something for you?
As an entrepreneur, the Youngtimer scheme is definitely worthwhile. It offers tax benefits and a neat appearance. Whether you are just starting out or have been around longer. A Youngtimer is a smart choice for those who want to drive efficiently and value style.
