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…
EddyMo said:
The PCP deals look remarkably cheap but after doing the sums they are pretty much like an interest only mortgage. The majority of the payments cover the interest owed leaving you with very little of the balance paid off at the end of term. Could lead to a nasty shock if the residuals aren’t what you hoped. Whatever happened to guaranteed future values?
Thats what the final 'balloon' payment on a PCP is! You can either pay it or hand the car back (subject to mileage and condition penalties) if the value at that point is less than the 'balloon', thus guaranteeing the 'future value'.Saw one on the M4 heading to Bristol last Monday.
Unfortunately i have nothing else to add to this other than "it looked like the RRS in the pictures, just covered in camouflage", but as - let's be honest - spotting a prototype/disguised car is a genuine thrill for most middle aged men, i felt i needed to share this.
Unfortunately couldn't identify the sock colour of the driver, and when i shouted "WHAT IS YOUR BELLEND RATIO MATE?" out the window he didn't reply.
'welcome.
Unfortunately i have nothing else to add to this other than "it looked like the RRS in the pictures, just covered in camouflage", but as - let's be honest - spotting a prototype/disguised car is a genuine thrill for most middle aged men, i felt i needed to share this.
Unfortunately couldn't identify the sock colour of the driver, and when i shouted "WHAT IS YOUR BELLEND RATIO MATE?" out the window he didn't reply.
'welcome.
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