An excerpt from a conversation with a client:
– Hi Eglė, listen, your accountant is telling me I have to pay tax on this benefit in kind.
– So? – I ask.
– Well, you know, I talked to my friends and none of them pay it.
– Then let them not pay. That’ll be their problem, not yours.
– And what happens if I don’t pay?
– Maybe nothing. Or maybe they’ll audit you in three years and you’ll have to pay for all three years plus late-payment interest on top…
– But it’s just one car. Do they really care about one car?
– Well, what’s the car worth?
– EUR 80,000.
– Then tell me: why does a dental practice need a car worth EUR 80,000? If it’s only used for business purposes – to transport dental drills or fillings – such an expensive car is certainly not necessary.
A pause and silence on the line…
– OK, tell her to calculate the benefit in kind.
Sometimes the hardest part isn’t calculating the taxes, but explaining why they’re worth paying. 💬
Just because your friends don’t pay doesn’t mean it’s the right decision for your business.
We all want to pay as little tax as possible, and that’s normal. What matters is looking for legal ways to optimise and not overpaying where savings are possible. 💡
But decisions shouldn’t be based solely on the fact that “others do it this way”.
Sometimes a few euros today mean much greater peace of mind tomorrow. ✅
