Used Tesla Model S as a company car?

[AlexNJ89]

Hi guys,

I've always dreamt of owning a Tesla Model S since they were first released.

I'm someone who finances my cars usually using a personal loan or HP.

I spoke to the Tesla sales team who are offering a straight-up HP agreement on an Approved Used Model S. I will always be someone who buys second-hand as I don't have the desire to spec my own car or be the first owner.

In April 2020 EV's are going to have 0% company car tax, which looks super interesting, but as I will be buying a used one, how do I structure this?

I'm 50% owner in the company, so I was planning on taking a smaller salary and the car as payment as it would be more tax-efficient.

So, is it possible to finance a used car as a company car or does it have to be a new car/leased?

Secondly, I'm guessing that as my company will own the car, I will have to rely on the fact the company will always own my car and despite taking a lower salary I will never have personal equity in the car?

Any advice would be greatly appreciated

[Chozza]

Pretty certain that the 0% on EV company cars only applies to cars that are newly registered from the 6th April 2020

so your used Tesla wouldn't count.

I think you also need to speak to your accountant - as im not sure you understand how your company would pay for any company cars

Edited by Chozza on Sunday 17th November 18:38

[MOBB]

I think cars registered before 5/4/20 are taxed at 2% but less 2% reduction for 2020/21

It’s a bit messy but I think all BEV’s get 0% from April

[AlexNJ89]

Chozza said:

Pretty certain that the 0% on EV company cars only applies to cars that are newly registered from the 6th April 2020

so your used Tesla wouldn't count.

I think you also need to speak to your accountant - as im not sure you understand how your company would pay for any company cars

Edited by Chozza on Sunday 17th November 18:38

Yep, I will be running it past my accountant next week.

[Court_S]

Chozza said:

Pretty certain that the 0% on EV company cars only applies to cars that are newly registered from the 6th April 2020

so your used Tesla wouldn't count.

I think you also need to speak to your accountant - as im not sure you understand how your company would pay for any company cars

Edited by Chozza on Sunday 17th November 18:38

It applies to all EV’s on company car schemes. For example, two colleagues have just taken delivery of e-Golf’s and as of April next year they pay no BIK (the system we order cars through shows you the BIK implications for the next three years).

I’m not sure how the company car thing would work on a used car, definitely one for your accountant.

[astroarcadia]

Why does it have to be purchased by the company?

[lost in espace]

astroarcadia said:

Why does it have to be purchased by the company?

The company actually needs the funds to buy it, a loan from a Director will suffice. Otherwise the company doesn't own it.

[MOBB]

Court_S said:

Chozza said:

Pretty certain that the 0% on EV company cars only applies to cars that are newly registered from the 6th April 2020

so your used Tesla wouldn't count.

I think you also need to speak to your accountant - as im not sure you understand how your company would pay for any company cars

Edited by Chozza on Sunday 17th November 18:38

It applies to all EV’s on company car schemes. For example, two colleagues have just taken delivery of e-Golf’s and as of April next year they pay no BIK (the system we order cars through shows you the BIK implications for the next three years).

I’m not sure how the company car thing would work on a used car, definitely one for your accountant.

I think the main difference new vs used is the capital allowances treatment, new gets 100% FIrst year allowance and used doesn’t

I think

[Shaoxter]

MOBB said:

I think the main difference new vs used is the capital allowances treatment, new gets 100% FIrst year allowance and used doesn’t

I think

That's my understanding.
New/used are the same when it comes to BIK (i.e. 0% for 20/21 for BEVs)

[AlexNJ89]

lost in espace said:

The company actually needs the funds to buy it, a loan from a Director will suffice. Otherwise the company doesn't own it.

I could finance the car and put it through as a director's loan to the company, so long as I still get 0% BIK.

[rich12]

AlexNJ89 said:

I could finance the car and put it through as a director's loan to the company, so long as I still get 0% BIK.

Out of interest, what are the perks that warrant you wanting to put it through your own business? Just buy it personally and then you don't even have to worry whether the BIK is 0% or 100%.

[AlexNJ89]

rich12 said:

Out of interest, what are the perks that warrant you wanting to put it through your own business? Just buy it personally and then you don't even have to worry whether the BIK is 0% or 100%.

Sure, I get taxed 40% on earnings above a certain level, so putting a car through the business that is 0% BIK will mean I get to take the car as earnings instead at 0% income tax.

The company is VAT registered so the 20% VAT can be claimed back. (I need to double-check this)

I also believe the depreciation of the car can be a tax write off too.

So all in all, I get a big chunk off my income tax and 20% discount as I don't pay VAT.

But I'm far from an expert and made this thread so see if anyone else has done it.

[rich12]

Ah OK I see so take it instead of earnings. That's fine and good if you can do it.

Do tesla have plenty of used vat q cars?

[AlexNJ89]

rich12 said:

Do tesla have plenty of used vat q cars?

I have no idea I've only just begun researching