Best way to drive an EV (Renault 5) through a business?

[Phooey]

Admittedly I haven't a clue here so bear with me..

Currently considering a Renault 5 electric car as a company vehicle but spoilt for choice in ways to do it. One option is lease (business doesn't own it). Another option is purchase it (either cash or finance) through the business. Or lastly purchase it privately.. but I'm guessing business is the way to go.

I want cheap running and ownership costs for both me and the business hence considering the Renault 5. Depending on model it's either 29k or 30k after the gov grant (£1500). How much would that cost me in BIK being a 20% taxpayer and using for private milage too?

Anything else to consider with regards to best way for a Limited & VAT reg company to run an electric vehicle??

Thanks

[MustangGT]

29-30k for a Renault 5? Seems very steep, have you looked at other options, say Kia or Hyundai for VFM.

If the company provides you the car you are looking at BIK, This tax year this is 3% of the P11D value, this rises 1% per year for the foreseeable future. The company will also pay NIC on the BIK on top of the actual costs to the company.

If you charge the car at home you can claim 8p/mile, if at a public charger 12p/mile (for business miles)

If you 'own' the car you can charge the company 45p/mile for the first 10,000 business miles, 25p/mile thereafter with no personal tax implications.

Bear in mind taxation if you choose to get the company to pay for all 'fuel'.

[Phooey]

MustangGT said:

29-30k for a Renault 5? Seems very steep, have you looked at other options, say Kia or Hyundai for VFM.

If the company provides you the car you are looking at BIK, This tax year this is 3% of the P11D value, this rises 1% per year for the foreseeable future. The company will also pay NIC on the BIK on top of the actual costs to the company.

If you charge the car at home you can claim 8p/mile, if at a public charger 12p/mile (for business miles)

If you 'own' the car you can charge the company 45p/mile for the first 10,000 business miles, 25p/mile thereafter with no personal tax implications.

Bear in mind taxation if you choose to get the company to pay for all 'fuel'.

Thanks. I like the style and size of the R5 - and it doesn't seem too bad IMO for the money. I would mainly charge the car at home, and probably use it 30-50% for private use.

[n_const]

You need to speak to your account. Buy the car in the business name (PCP/HP), fully tax deducatable in the first year and can charge the business back 45p per mile business miles.

I can help if you need a car supplied too

[Pit Pony]

n_const said:

You need to speak to your account. Buy the car in the business name (PCP/HP), fully tax deducatable in the first year and can charge the business back 45p per mile business miles.

I can help if you need a car supplied too

I'm pretty sure if the car is in business name the pence per mile is somewhat lower. The figures will be on hmrc website. No need for an accountant.

[geeks]

MustangGT said:

If you 'own' the car you can charge the company 45p/mile for the first 10,000 business miles, 25p/mile thereafter with no personal tax implications.

Does this still apply to electrics vehicles? I am sure my place pay a reduced amount for them

[GuigiaroBertone]

n_const said:

You need to speak to your account. Buy the car in the business name (PCP/HP), fully tax deducatable in the first year and can charge the business back 45p per mile business miles.

I can help if you need a car supplied too

Yes you do need to speak to an account(ant) because the advice given above is wrong twice!

1) You cannot claim the 100% capital allowance if it is not owned by the company- i.e. a lease or PCP. You can claim if bought outright or a HP.

2) If the car is owned by the business you cannot claim 45p /mile.

You can claim 8p or 14p as previously mentioned.

If owned by the business you can also claim all running costs inc. maintenance, insurance, tyres, even detailing etc, so running a new EV through the business is still a no brainer, but yes- speak to an accountant.

[n_const]

GuigiaroBertone said:

Yes you do need to speak to an account(ant) because the advice given above is wrong twice!

1) You cannot claim the 100% capital allowance if it is not owned by the company- i.e. a lease or PCP. You can claim if bought outright or a HP.

2) If the car is owned by the business you cannot claim 45p /mile.

You can claim 8p or 14p as previously mentioned.

If owned by the business you can also claim all running costs inc. maintenance, insurance, tyres, even detailing etc, so running a new EV through the business is still a no brainer, but yes- speak to an accountant.

Apologies, was told that by my dealer principal/owner of the business !

Still, extremely cost effective.

Edited by n_const on Wednesday 3rd September 17:02