(Electric) Company Car 'v' (Non Electric) Personal Car
Discussion
MaxFromage said:
I haven't replied regarding the VAT flat rate point you made as you are correct. There's no need for me to confirm it again.
OP- If your accountant is a bit woolly on the subject then I think you should consider changing accountants. You are registered flat rate, so cannot claim the VAT on your lease, fuel (electricity), servicing etc. A quick calculation suggests you'd save 25% on your motoring costs, but these calculations need to be assessed on a case by case basis.
Also there are much better deals on iPace than the one you suggest for the Etron. Have a look at someone like Gateway to Lease.
Firstly, with regards to the car. Like most purchases, it is not simply picking the cheapest, it involves picking the one which is best suited to the person. On that basis, for myself, the E-Tron is the one I prefer. If I wanted something cheaper there are other (non suitable) cars I could consider.OP- If your accountant is a bit woolly on the subject then I think you should consider changing accountants. You are registered flat rate, so cannot claim the VAT on your lease, fuel (electricity), servicing etc. A quick calculation suggests you'd save 25% on your motoring costs, but these calculations need to be assessed on a case by case basis.
Also there are much better deals on iPace than the one you suggest for the Etron. Have a look at someone like Gateway to Lease.
In relation to the flat rate VAT scheme, I understand the basis of this, ie that I would not be able to reclaim VAT on purchases. At this point I am on the flat rate scheme, at 13%. I'm invoicing out circa 15k per month, and the amount of VAT I would be able to recover (excluding the potential car) is negligible. As such on the 15k I invoice, this equates to 18k including VAT (or 3k in vat), but at 13% I pay back VAT totaling 2.3k, so in essence make £640.00 per month for nothing (less the bits of VAT I cannot claim back).
The E-Tron (which I have just ordered - for the sake of thread updates) is going to be £497.00 per month (including a few options), so in essence being on the flat rate scheme pays for this.
I currently have a personal lease but I'm also considering leasing an EV on my limited company with the changes to BIK over the next 3 years. One question I had was in regard to the insurance. Am I still able to insure the lease vehicle on my name (using my personal NCB) as I currently do on my personal lease? Or do I have to take out company car insurance against my limited company and therefore I assume pay more without my personal NCB?
Thanks. Good to know that I'm able to use my personal NCB. This seems a bit of a no brainer!
Does anyone know if the changes to BIK have been fully confirmed or are they still a draft proposal from the government?
Also if I was to take a lease in November, am I correct in assuming I am only liable for BIK for Nov 19 to March 20 on current rates and then after at 0,1,2%?
Does anyone know if the changes to BIK have been fully confirmed or are they still a draft proposal from the government?
Also if I was to take a lease in November, am I correct in assuming I am only liable for BIK for Nov 19 to March 20 on current rates and then after at 0,1,2%?
PHSK01 said:
Thanks. Good to know that I'm able to use my personal NCB. This seems a bit of a no brainer!
Does anyone know if the changes to BIK have been fully confirmed or are they still a draft proposal from the government?
Also if I was to take a lease in November, am I correct in assuming I am only liable for BIK for Nov 19 to March 20 on current rates and then after at 0,1,2%?
Fully confirmed, it's a no brainer indeed!Does anyone know if the changes to BIK have been fully confirmed or are they still a draft proposal from the government?
Also if I was to take a lease in November, am I correct in assuming I am only liable for BIK for Nov 19 to March 20 on current rates and then after at 0,1,2%?
You need to have an insurable interest on anything to be able to insure it so the company should do it, that said most insurance companies will reuse the NCB recognise the driver. You also want the company to insure it as it comes out company pretax funds.
As said, the BIK is done, the only thing that can stop it is if they removed the EV exemption on salary sacrifice benefits which is unlikely.
As said, the BIK is done, the only thing that can stop it is if they removed the EV exemption on salary sacrifice benefits which is unlikely.
PHSK01 said:
Tiggsy said:
Yep....lot of own company bods going to be in Teslas come April!
Indeed...better get the calculator out and work out my BIK for the few months in this tax year! Can’t be much in when considered in the overall lease cost.Full list price * 0.16 * number of days in the tax year you'll have the car / 365
Get a 50k car at the end of Nov say and you are looking at 50 * 0.16 x 120/365 = £2630 or thereabout
Heres Johnny said:
PHSK01 said:
Tiggsy said:
Yep....lot of own company bods going to be in Teslas come April!
Indeed...better get the calculator out and work out my BIK for the few months in this tax year! Can’t be much in when considered in the overall lease cost.Full list price * 0.16 * number of days in the tax year you'll have the car / 365
Get a 50k car at the end of Nov say and you are looking at 50 * 0.16 x 120/365 = £2630 or thereabout
Thanks for saving me the bother of calculating 😉
Heres Johnny said:
PHSK01 said:
Tiggsy said:
Yep....lot of own company bods going to be in Teslas come April!
Indeed...better get the calculator out and work out my BIK for the few months in this tax year! Can’t be much in when considered in the overall lease cost.Full list price * 0.16 * number of days in the tax year you'll have the car / 365
Get a 50k car at the end of Nov say and you are looking at 50 * 0.16 x 120/365 = £2630 or thereabout
Tiggsy said:
Heres Johnny said:
PHSK01 said:
Tiggsy said:
Yep....lot of own company bods going to be in Teslas come April!
Indeed...better get the calculator out and work out my BIK for the few months in this tax year! Can’t be much in when considered in the overall lease cost.Full list price * 0.16 * number of days in the tax year you'll have the car / 365
Get a 50k car at the end of Nov say and you are looking at 50 * 0.16 x 120/365 = £2630 or thereabout
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