My first company car but a hybrid ? worth it ?

My first company car but a hybrid ? worth it ?

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lexi 1

Original Poster:

87 posts

152 months

Saturday 23rd July 2016
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Am thinking of getting my first company car I own the company,the company is doing well and can afford a monthly outlay of 500-1000 without issue

I have heard about some great tax benefits of running a hybrid as the tax situation is greatly favourable any advise welcome

Ultraviolet

623 posts

216 months

Saturday 23rd July 2016
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I have a BMW 330e and it's excellent. I've done about 1,000 miles so far and spent around £50 on fuel. However, my commute is a short drive to the station, so entirely electric. So it depends on your situation slightly. Having said that, BIK is significantly lower than an ICE car, so this could save you a significant amount in tax. For your budget, I'd be looking at a Tesla model S - much greater range, huge performance and lower tax -,what's not to like? Also, Chargemaster are promoting charging at work, so if you can persuade your company to install a charging point at the office, then that would open up an even greater range (as you can charge up at work).

UV

Flooble

5,565 posts

100 months

Saturday 23rd July 2016
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Just be sure to talk it over with your accountant - BIK rules are changing so it's not the fantastic deal it was a year or two ago (0% BIK IIRC)

MrOrange

2,035 posts

253 months

Sunday 24th July 2016
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If you want something special then at the top of your budget you're into BMW i8 territory. Speak to your accountant as lots of different ways to play the tax game.

lexi 1

Original Poster:

87 posts

152 months

Tuesday 26th July 2016
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Thank you for all the replies has anyone else actually done it and what were the benefits ?

oop north

1,595 posts

128 months

Tuesday 26th July 2016
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I got a bmw i3 just before Christmas. This after spending five years constantly thinking about getting a car through my company. Benefits? Well leccy per mile is working out at just under 4p (and I get that tax free from the company), have contract hire for 17k miles pa costing about £400 per month and this year's tax on the company car will be around £1k total (7% x list price x 40% tax). The total post tax cost per mile will be under 30p and that is pretty close to giving me break even on using the LR D4. Got it really because my mileage went up from 14k miles to 29k miles and didn't want to do that many in the D4.

But benefit charge over next few years will be (this is from memory so might be a bit out) 9%, 13% and 16% (not sure if have missed an 11% out... Anyway tax saving getting a lot less. The lower the total annual mileage you do the less worthwhile it is. Over the three year contract I am ahead but not sure if it will be worth getting another. A 20k golf might be just as cheap in tax due to lower list price

oop north

1,595 posts

128 months

Tuesday 26th July 2016
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Sorry - should have said that hybrid benefit similar to my Rex... I know you didn't ask about electric cars per se

MrOrange

2,035 posts

253 months

Wednesday 27th July 2016
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lexi 1 said:
Thank you for all the replies has anyone else actually done it and what were the benefits ?
Your accountant will be better placed to advise on the financial benefits such as 100% WDA, lower BIK etc. The savings for me were substantial when I bought my i8.

The car benefits of a hybrid are lower running costs, quieter/smoother journeys, Eco-smugness and the knowledge that you've left the 20th century behind smile

lexi 1

Original Poster:

87 posts

152 months

Tuesday 2nd August 2016
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MrOrange said:
Your accountant will be better placed to advise on the financial benefits such as 100% WDA, lower BIK etc. The savings for me were substantial when I bought my i8.

The car benefits of a hybrid are lower running costs, quieter/smoother journeys, Eco-smugness and the knowledge that you've left the 20th century behind smile
I have thought of three possible cars I8/XC90 T8 or Tesla sorry to be dense but what is wda and bik

Flooble

5,565 posts

100 months

Tuesday 2nd August 2016
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WDA = Write Down Allowance
BIK = Benefit in Kind

Really need to talk to your accountant so you don't end up in trouble. They should be taking care of tax planning for you!

lexi 1

Original Poster:

87 posts

152 months

Tuesday 2nd August 2016
quotequote all
Flooble said:
WDA = Write Down Allowance
BIK = Benefit in Kind

Really need to talk to your accountant so you don't end up in trouble. They should be taking care of tax planning for you!
Oh yes of course smile yes they take great care of these things just wanted to see for my self

Guvernator

13,155 posts

165 months

Tuesday 2nd August 2016
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As others have mentioned, the benefits of having an electric or hybrid as a company car will get significantly worse over the next few years as the BIK tax rates get hiked. The government aren't stupid and really can't afford a dip in tax take. As soon as the uptake of electric became a reality, they have done and will continue to make them less attractive in terms of tax breaks.