Buying Electric Car Through My Ltd Company?
Discussion
OK,
I'm thinking of purchasing a Renault Zoe as a vehicle, possibly purchasing through my Ltd company.
I believe I can get a government grant of 25% of the cars value if I buy electric.
Also, there is 100% allowance on the car in first year of ownership, there is also no BIK tax until 2015/16.
Opinions please?
I'm thinking of purchasing a Renault Zoe as a vehicle, possibly purchasing through my Ltd company.
I believe I can get a government grant of 25% of the cars value if I buy electric.
Also, there is 100% allowance on the car in first year of ownership, there is also no BIK tax until 2015/16.
Opinions please?
It's not 25% it's £5k, you should be able to write off 100% of its value aswell assuming you purchase it?
If leased you put it through business where it attracts 0% BIK And hence no company car tax.
Not sure on the maths but your probably still better sticking personal and claiming 45p a mile.
If leased you put it through business where it attracts 0% BIK And hence no company car tax.
Not sure on the maths but your probably still better sticking personal and claiming 45p a mile.
It is 25%, it's just capped at £5k.
Obvious answer is speak to your accountant but if that's not possible then there is some good info to be found online.
http://www.hmrc.gov.uk/capital-allowances/plant.ht...
Obvious answer is speak to your accountant but if that's not possible then there is some good info to be found online.
http://www.hmrc.gov.uk/capital-allowances/plant.ht...
IN51GHT said:
OK,
I'm thinking of purchasing a Renault Zoe as a vehicle, possibly purchasing through my Ltd company.
I believe I can get a government grant of 25% of the cars value if I buy electric.
Also, there is 100% allowance on the car in first year of ownership, there is also no BIK tax until 2015/16.
Opinions please?
If the car is bought by the company you can write down the entire value against corporation tax, effectively getting a 20-23% discount on the price (depends on your corp tax level). You can also roll this forward and use up over time.I'm thinking of purchasing a Renault Zoe as a vehicle, possibly purchasing through my Ltd company.
I believe I can get a government grant of 25% of the cars value if I buy electric.
Also, there is 100% allowance on the car in first year of ownership, there is also no BIK tax until 2015/16.
Opinions please?
As others have said, the grant is for a maximum of £5k although that will be phased out within a couple of years.
Bear in mind there is zero road tax on EV's at present, zero congestion charges, and zero BIK too.
Cost of electricity per whole year (if plugged in over night) is about £150 for 10,000 miles, or 1.5p per mile. What you actually do with mileage charges through the company is up to your accountant. Basically its ludicrously cheap to run an EV through a company.
If you top it up at home at night then any 13amp socket will do, and there's over 1 billion sockets in the UK (!). If you want domestic/office charging to be quicker without buying any daftly expensive 'charge points' just fit a normal 32amp socket / cable / RCD instead and the maximum time to charge will be about 2.5/3hrs max even if completely 'empty'. If you do want to do some miles all Welcome-Break motorway service stations have free high power charging (30 mins…) and all IKEA's now have free charging in their carparks too, and that literally thousands of hotels, restaurants, supermarkets, and public carparks etc etc now have 3kw or 7kw sockets. Plus, there's the best part of 10,000 other 7kw or higher locations around the UK which you can find from various websites like zerocarbonworld.org or openchargemap.org and others. The funny thing is that after doing 20,000 EV miles I rarely ever bother with public charging places, like maybe 3 times, but its nice to know its out there if you need it despite the public notion that it doesn't exist.
Butter Face said:
Have you asked if buying through the company has any implications on the free wall box?
It's somwthibg I've never been asked but it just came up in my head......
We already have a free wall box, anybody in the country can get one by talking to British Gas or charge master for example.It's somwthibg I've never been asked but it just came up in my head......
Looks favourable from my last conversation with my accountant.
No effect on personal TAX situation because Electric cars for employess are exempt from income and national insurance contributions, and also the because the no fuel is used there is no fuel benefit. Therefore for the time being is no personal tax.
The company will then get the full relief of the purchase/lease of the vehicle in the company accounts.
No effect on personal TAX situation because Electric cars for employess are exempt from income and national insurance contributions, and also the because the no fuel is used there is no fuel benefit. Therefore for the time being is no personal tax.
The company will then get the full relief of the purchase/lease of the vehicle in the company accounts.
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