EV Company Car or £6k allowance?
Discussion
Historically I’ve always opted for a company car however following a promotion and the fact our company has decided to offer Only electric cars makes my decision a fair bit harder
The EV’s on offer, given the role (construction project manager) are quite frankly terrible (i3, Corsa, mini etc), we can however pay to increase availability, the basic Tesla model 3 costs an additional £195 per month which seems a bit steep however I suppose there is no BIK which offsets some of the cost
Mileage will be around 80 per day, Or do I just buy a £5k runaround and click the difference?
The EV’s on offer, given the role (construction project manager) are quite frankly terrible (i3, Corsa, mini etc), we can however pay to increase availability, the basic Tesla model 3 costs an additional £195 per month which seems a bit steep however I suppose there is no BIK which offsets some of the cost
Mileage will be around 80 per day, Or do I just buy a £5k runaround and click the difference?
F*ck that.
It'll cost you £6k, plus tax on the car, and you end up in some miserable EV for very few miles business use. And PAY £200 a month to drive some bloody Tesla? So £8400 a year out of pocket? So, over 3 years, that nigh-on £24k you have "spent" just for work transport.
I used to love company cars, but that was a long time ago.
Buy a banger, pocket the cash, live stress free.
It'll cost you £6k, plus tax on the car, and you end up in some miserable EV for very few miles business use. And PAY £200 a month to drive some bloody Tesla? So £8400 a year out of pocket? So, over 3 years, that nigh-on £24k you have "spent" just for work transport.
I used to love company cars, but that was a long time ago.
Buy a banger, pocket the cash, live stress free.
Edited by SUPER Author on Friday 18th December 16:35
Hard choice there. You don't get a lot for 6K a year after tax if you take the allowance and are you restricted on choice? i.e 4 doors, no convertibles etc.
I'd probably pay the difference and get the Tesla 3. running a new car for only £195 a month seems a bargain and then I'd get something else for the weekend.
I'd probably pay the difference and get the Tesla 3. running a new car for only £195 a month seems a bargain and then I'd get something else for the weekend.
I have gone Hybrid, Car Tax is way cheaper.
However it costs me approx £3.00 per charge at home, once you times that by x amount of days it would soon add up on your electric bill.
Would they allow an older car, IE get a car for £5k and keep £1k for costs.
If you do take electric I would ask about the home charging and electricity costs?
However it costs me approx £3.00 per charge at home, once you times that by x amount of days it would soon add up on your electric bill.
Would they allow an older car, IE get a car for £5k and keep £1k for costs.
If you do take electric I would ask about the home charging and electricity costs?
SUPER Author said:
F*ck that.
It'll cost you £6k, plus tax on the car, and you end up in some miserable EV for very few miles business use. And PAY £200 a month to drive some bloody Tesla? So £8400 a year out of pocket? So, over 3 years, that nigh-on £24k you have "spent" just for work transport.
I used to love company cars, but that was a long time ago.
Buy a banger, pocket the cash, live stress free.
Isn't BIK on electric cars currently 0%?It'll cost you £6k, plus tax on the car, and you end up in some miserable EV for very few miles business use. And PAY £200 a month to drive some bloody Tesla? So £8400 a year out of pocket? So, over 3 years, that nigh-on £24k you have "spent" just for work transport.
I used to love company cars, but that was a long time ago.
Buy a banger, pocket the cash, live stress free.
Edited by SUPER Author on Friday 18th December 16:35
OP - depends on how many miles you do and what you want from your car.
£6k before tax doesn't get you very far if you're doing 20k miles a year and need something reliable and comfortable.
£200 a month to run a Tesla is cheap - if it were an ICE company car you'd pay that at least in BIK anyway.
If you want a new car and an EV suits your lifestyle, the Tesla looks good.
If you don't do many miles and want to keep costs down, pocket the cash and pursue bangernomics.
Presuming Ed said:
Hard choice there. You don't get a lot for 6K a year after tax if you take the allowance and are you restricted on choice? i.e 4 doors, no convertibles etc.
I'd probably pay the difference and get the Tesla 3. running a new car for only £195 a month seems a bargain and then I'd get something else for the weekend.
Absolutely no stipulations on style/shape/doors etc just needs to be roadworthy I'd probably pay the difference and get the Tesla 3. running a new car for only £195 a month seems a bargain and then I'd get something else for the weekend.
Suppose it’s also worth noting any trade up amounts come off my top line so don’t pay tax/ni which softens the blow again
For reference the model 3 Performance version (0-60 in 3.1 😳) is available for £400 a month!
OP you say you do 80 miles a day but do you do many personal miles at the weekend and are the 80 seen as business miles or personal (commuting)?
What is the reimbursement policy for business miles if you take the allowance?
Do you like a Tesla or do you want something more interesting?
What is the reimbursement policy for business miles if you take the allowance?
Do you like a Tesla or do you want something more interesting?
Edited by RichardAP on Friday 18th December 17:16
brianb said:
Absolutely no stipulations on style/shape/doors etc just needs to be roadworthy
Suppose it’s also worth noting any trade up amounts come off my top line so don’t pay tax/ni which softens the blow again
For reference the model 3 Performance version (0-60 in 3.1 ??) is available for £400 a month!
£400 for a car that can do 60 in just over 3 seconds and costs c1p/mile to fuel if you charge up overnight at home. Why don't you Test drive one and then make the decision...Suppose it’s also worth noting any trade up amounts come off my top line so don’t pay tax/ni which softens the blow again
For reference the model 3 Performance version (0-60 in 3.1 ??) is available for £400 a month!
I read it as forgoing a £6k allowance and an extra £195 a month.
It’s going to depend on your circumstances, marginal tax rate and how badly you want a new car vs trying to run something used on the allowance.
Is there an ability to claim mileage on a personal car if you take the allowance?
The rate on the base Tesla sounds a bit steep as that’s effectively £695 a month - even taking the mileage into account it should be less.
It’s going to depend on your circumstances, marginal tax rate and how badly you want a new car vs trying to run something used on the allowance.
Is there an ability to claim mileage on a personal car if you take the allowance?
The rate on the base Tesla sounds a bit steep as that’s effectively £695 a month - even taking the mileage into account it should be less.
RichardAP said:
OP you say you do 80 miles a day but do you do many personal miles at the weekend and are the 80 seen as business miles or personal (commuting)?
What is the reimbursement policy for business miles if you take the allowance?
Do you like a Tesla or do you want something more interesting?
This is the crunchy question. What is the reimbursement policy for business miles if you take the allowance?
Do you like a Tesla or do you want something more interesting?
Edited by RichardAP on Friday 18th December 17:16
18 months ago I had a 25,000 mile a year commute which was business miles. The first 10k miles at 45p a mile were simply a revenue stream - 600 miles in my £300 diesel cost £70 and I was paid £250 for them. Even when it dropped to 25 p or whatever it was, I was still making money driving to work. My car depreciated about £50, and it cost me another £50 to service it.
We also have had a car allowance at work since, well, forever. I’ve always just taken the money.
SUPER Author said:
I used to love company cars, but that was a long time ago.
Buy a banger, pocket the cash, live stress free.
Likewise and likewise. Buy a banger, pocket the cash, live stress free.
Edited by SUPER Author on Friday 18th December 16:35
I'll spend my head earned on cars for the garage I like, but getting around for work...? Even £5k gets you a lot of useable car to do the s
t miles in. brianb said:
The 80miles per day where company miles, a real mix between to the head office (which I assume can not be claimed) and to various sites (which I assume I can?)
If I where to opt for the cash allowance, business mileage would be paid monthly at a rate of 17ppm I think
Worth checking with HR where your “base” is. If it’s home you could claim it all. Also how much is your current car costing you in tax each month?If I where to opt for the cash allowance, business mileage would be paid monthly at a rate of 17ppm I think
I get a 6k car allowance and do a 90 mile round commute a couple of times a week (used to be every
day).
Currently rocking around in a 1500 quid honda crv! Will likely 'upgrade' to a 4k focus next year, and alsosaving up for a nice weekend toy. I'm absolutely done wasting hundreds a month on an only ok car that depreciates so much.
And as said above by someone,it is the 6k, plus £195 a month. So 8k a year, call it 6 after tax. So 18k over 3 years, with nothing to show for it at the end.
Or you could gave a 5k hack, and a cayman, or a relatively new mx5, or whatever.
day).
Currently rocking around in a 1500 quid honda crv! Will likely 'upgrade' to a 4k focus next year, and alsosaving up for a nice weekend toy. I'm absolutely done wasting hundreds a month on an only ok car that depreciates so much.
And as said above by someone,it is the 6k, plus £195 a month. So 8k a year, call it 6 after tax. So 18k over 3 years, with nothing to show for it at the end.
Or you could gave a 5k hack, and a cayman, or a relatively new mx5, or whatever.
Edited by covmutley on Friday 18th December 21:11
What do you want to drive? This is pistonheads after all, you make the figures work whatever way is needed for the car you want!
I could have an astra company car, but take a 4k car allowance instead and drive a golf r. Strangely the 4k after tax doesn't quiet cover the golf, but I can't bring myself to drive an astra.
(yes my employer is extremely tight...)
I could have an astra company car, but take a 4k car allowance instead and drive a golf r. Strangely the 4k after tax doesn't quiet cover the golf, but I can't bring myself to drive an astra.
(yes my employer is extremely tight...)
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