RE: All-new Range Rover Sport revealed
Discussion
ecs0set said:
And this is your proposed alternative to a new Range Rover Sport? A 20 yr old Transit van and a box trailer? Tempting... 
Tell me, does it still work if you have a penchant for white socks and crane kicks?
If you're in a Transit, I believe the uniform is white vest, jeans and pointy shoes.Tell me, does it still work if you have a penchant for white socks and crane kicks?
Drink of choice would be a budget brand energy drink, "Kick energy" perhaps.
oop north said:
I don’t think it quite works out as half price. But current tax rates for next couple of years would be 5% bik if 70 miles EV range is possible (69 miles means 8%).
But in essence get full offset against corporation tax for all depreciation and running costs. Assuming total taxable income is within the £50k-£100k band then dividend tax is payable at 33.75% on dividends. Before you get there the corp tax (assuming profits over £50k) rate from next April is 25% (profit over £250k) or 26.5% (profit 50-250)
So assume list is £100k, car is bought with support of a loan, not contract hire, and it costs £30k in depreciation and repairs and tyres and borrowing costs. The dividends foregone are £30k x 75% for corp tax (or 73.5%) then x 64.25% for div tax. That reduces the £30k down to just under £15k. Hence the claimed halving. But you have income tax at 40% on £100k list x 5% (if manages 70 miles EV range) for 3 years so that is £6k tax to add.
Plus employer’s nic 15.05% on £100k x 5% x 3 years less corp tax relief less div tax avoided (am losing the Will to live at this point) at a guess around another £1k or so total to add is £7k for tax.
So £30k down to £15k plus £7k giving £22k cost through company so a saving of around £8k overall. Hope I got the maths right…
Anyway it’s a useful saving. The higher the depreciation etc costs then the more the saving - £30k may well be too low. So an additional £10k cost, say, (total £40k) would add post tax cost of roughly £5k or a bit less and cost you a net £5k with no additional bik or nic liability. None of that allows for vat reclaim on tyres, repairs and maintenance - full vat is recoverable on those
Should add if bik percentage rate rises above 5% then the benefit is reduced…
👍But in essence get full offset against corporation tax for all depreciation and running costs. Assuming total taxable income is within the £50k-£100k band then dividend tax is payable at 33.75% on dividends. Before you get there the corp tax (assuming profits over £50k) rate from next April is 25% (profit over £250k) or 26.5% (profit 50-250)
So assume list is £100k, car is bought with support of a loan, not contract hire, and it costs £30k in depreciation and repairs and tyres and borrowing costs. The dividends foregone are £30k x 75% for corp tax (or 73.5%) then x 64.25% for div tax. That reduces the £30k down to just under £15k. Hence the claimed halving. But you have income tax at 40% on £100k list x 5% (if manages 70 miles EV range) for 3 years so that is £6k tax to add.
Plus employer’s nic 15.05% on £100k x 5% x 3 years less corp tax relief less div tax avoided (am losing the Will to live at this point) at a guess around another £1k or so total to add is £7k for tax.
So £30k down to £15k plus £7k giving £22k cost through company so a saving of around £8k overall. Hope I got the maths right…
Anyway it’s a useful saving. The higher the depreciation etc costs then the more the saving - £30k may well be too low. So an additional £10k cost, say, (total £40k) would add post tax cost of roughly £5k or a bit less and cost you a net £5k with no additional bik or nic liability. None of that allows for vat reclaim on tyres, repairs and maintenance - full vat is recoverable on those
Should add if bik percentage rate rises above 5% then the benefit is reduced…
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