2018 Range Rover hybrid as company car ?

[phib]

Hi all,

Looking at a Range Rover hybrid as a potential company car.
We have a Ltd vat registered business.
The new RR Has really low car tax rating (64g).

Have had our own cars for years as company car tax was so high.

To get to what this will cost us net and having not done this recently maybe lease or pcp, is it as simple as taking the monthly amount, taking off the vat and then taking the ammount off the tax bill ?

If I am right the after vat and taking a nominal 40% percent tax ultimately it would really cost us something like £600 a month ( assuming the monthly cost was £1,300 ish)

Advice very welcome

Thanks

Phil

[P700DEE]

I don't think so. I'm a sole trader so not quite the same.
https://www.itcontracting.com/company-car-expenses...
This might help but speak to your accountants.

[quinny100]

You’re miles off. Talk to your accountant. Understand the difference between the company finances and your personal finances. It doesn’t matter if you’re running a one man contracting company or have a 1000 heads, you are still personally an employee of the business, even if you are a director and own all the shares.

Firstly, you will personally be liable for BIK tax on the car. Between £153 (20% taxpayer now) and £448 (40% in 3 yrs time as the BIK rates increase) per month for the cheapest RRS HSE hybrid.

Company cars with any element of personal use you can only claim 50% of the VAT back on the purchase price or lease payments.

If you buy it on HP or PCP it’s even more complicated because it’s capital rather than opex so you can’t just write off the purchase price immediately.

If you lease at £1000 + VAT per month, cost to the company is £1100. This will reduce your profit by £1100 a month but corporation tax is usually 19% so that only brings the cost down to £891. But by the time you’ve paid the personal BIK tax you’re not saving a lot overall.

[phib]

Bugger..... but thank you that is incredibly helpful !

This is why I have a finnce director ( who is on holiday!)

Private still the way to go

Phil

[rustyuk]

If you don't need the rear seats you could get the commercial version and then just pay the Van BIK Tax, which is around £1300 a year for 40% tax payers

[phib]

I don’t think the Range Rover has a commercial version

Phib

[anonymous-user]

Company also pays class 1A ni too, 13.8% x 13% (rising to 16) x p11d value

Thick end of £2k a year there isn’t it?

[rustyuk]

Yeap you are correct Disco only, thought Range Rover offered a commercial variant but apparently not.

Think the total costs are around £2k if you include fuel. When I did my research there was really no other option that was cheaper.