Discussion
I'm a business owner and currently I own a diesel range rover that I claim mileage against. With the way we now do business my business mileage is down to almost zero and my personal mileage in my daily car is around 15k a year. I think I want to change to a Taycan sport turismo. There are benefits to the company and myself financially. There are also loads of fast chargers locally. I don't really like the idea of EV's and have only just recently started thinking about one for my daily. Has anyone else recently gone through the same process, gone for it and found it positive/ negative. Out of all EV's its the Taycan I prefer.
Thanks Iain .. my accountant has just got back to me and it certainly does make sense.
For the right type of qualifying vehicle (new and unused) the company could get 100% tax relief against the entire cost of car in year one (doesn’t apply if leased/contract hire) and as an individual the benefit in kind rate is at 2% of list price for the next 3 years. So a £100k brand new electric vehicle could save £19k in corp tax and you’d be taxed personally on £2k
I guess there are no discounts to be had .. I'm going to try to see if I can get one in 3 to 6 months time.
For the right type of qualifying vehicle (new and unused) the company could get 100% tax relief against the entire cost of car in year one (doesn’t apply if leased/contract hire) and as an individual the benefit in kind rate is at 2% of list price for the next 3 years. So a £100k brand new electric vehicle could save £19k in corp tax and you’d be taxed personally on £2k
I guess there are no discounts to be had .. I'm going to try to see if I can get one in 3 to 6 months time.
Edited by Jonny TVR on Thursday 31st March 09:00
ds666 said:
Don't forget that when you sell it there will be tax on the "profit" i.e. the difference between the written down value and what you sell it for .
I seriously can't get my head round why its best to tie up £100k of cash in a car .
But the BIK is exactly why I've had one . Once they crank it up , I'm out .
What else are you going to do with that spare cash that would give you that level of benefit?I seriously can't get my head round why its best to tie up £100k of cash in a car .
But the BIK is exactly why I've had one . Once they crank it up , I'm out .
ds666 said:
My comment was more about leasing v purchase rather than the amount .
But maybe use it to buy stock, expand the business, coke
Why let the lease companies make the margin and also you can write it down in the first year and get the corp tax back. Depends if there are any dealer and manufacturer supported deals about on lease but doubt it.But maybe use it to buy stock, expand the business, coke
Thanks all.
I think I will be happy with the 4S but I have a test drive booked in a GTS ST a week Saturday so will see what I think. I'm trying to resist going for the GTS/ Turbo
I had a go on the configurator and there seem to be so many options. Some of which are EV options which at the moment I don't understand.
I think I will get a fast charger put in at the office and home so I don't have to use third party sites .. or try not to anyway.
Its an interesting new World!
I think I will be happy with the 4S but I have a test drive booked in a GTS ST a week Saturday so will see what I think. I'm trying to resist going for the GTS/ Turbo
I had a go on the configurator and there seem to be so many options. Some of which are EV options which at the moment I don't understand.
I think I will get a fast charger put in at the office and home so I don't have to use third party sites .. or try not to anyway.
Its an interesting new World!
If I sell in 3 years’ time, the sale proceeds would be taxable as income in the company. If I p/x for another one, providing the rules are the same, I'd only pay/save tax on the difference between purchase/sale price. So will p/x when the time comes and hopefully the same incentives still exist then.
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