(Electric) Company Car 'v' (Non Electric) Personal Car

(Electric) Company Car 'v' (Non Electric) Personal Car

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Discussion

ODRALLAG

397 posts

157 months

Wednesday 21st August 2019
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So if your leasing through the business, what value do you use for the second year? Would it be the same as year one P11D?
And what if you take delivery say March 2020 one month before the new rates?

MaxFromage

1,859 posts

130 months

Wednesday 21st August 2019
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Your P11D benefit is based on the vehicle list price when new, whether the car is new or x years old. Your multiplier will be 16% up to 5th April 2020 and 0% between 6th April 2020 and 5th April 2021.

ODRALLAG

397 posts

157 months

Thursday 22nd August 2019
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MaxFromage said:
Your P11D benefit is based on the vehicle list price when new, whether the car is new or x years old. Your multiplier will be 16% up to 5th April 2020 and 0% between 6th April 2020 and 5th April 2021.
Thanks

Hobo

Original Poster:

5,755 posts

245 months

Thursday 22nd August 2019
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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.

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.

MaxFromage

1,859 posts

130 months

Thursday 22nd August 2019
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To be clear, when I was talking about saving 25%, I'm talking about leasing the E-Tron via your limited company vs your current vehicle.

PenelopaPitstop

2,147 posts

132 months

Friday 23rd August 2019
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How long is the wait for E-tron? It might be interesting option for next year via ltd company, except the part when I want to do 1000 miles in one go...

Hobo

Original Poster:

5,755 posts

245 months

Friday 23rd August 2019
quotequote all
PenelopaPitstop said:
How long is the wait for E-tron? It might be interesting option for next year via ltd company, except the part when I want to do 1000 miles in one go...
Was quoted 12 to 16 weeks.

PHSK01

14 posts

54 months

Monday 9th September 2019
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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?

oop north

1,592 posts

127 months

Monday 9th September 2019
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The policy has to be in the company’s Name but you can transfer the no claims.

jamoor

14,506 posts

214 months

Monday 9th September 2019
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oop north said:
The policy has to be in the company’s Name but you can transfer the no claims.
I'm pretty sure direct line had an option where you could say the car is a company lease

PHSK01

14 posts

54 months

Monday 9th September 2019
quotequote all
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%?

jamoor

14,506 posts

214 months

Monday 9th September 2019
quotequote all
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!

Tiggsy

10,261 posts

251 months

Monday 9th September 2019
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Yep....lot of own company bods going to be in Teslas come April!

Fastlane

1,133 posts

216 months

Monday 9th September 2019
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jamoor said:
Fully confirmed, it's a no brainer indeed!
Plus one, it's what I am doing. Tesla Model 3 Performance on its way.

Edited by Fastlane on Friday 13th September 14:20

Heres Johnny

7,175 posts

123 months

Monday 9th September 2019
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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.

PHSK01

14 posts

54 months

Monday 9th September 2019
quotequote all
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.

Heres Johnny

7,175 posts

123 months

Monday 9th September 2019
quotequote all
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.
Nothing to do with 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

PHSK01

14 posts

54 months

Monday 9th September 2019
quotequote all
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.
Nothing to do with 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
Sorry didn't mean that BIK was related to lease cost...just that any additional BIK incurred this tax year would still make the lease worthwhile in the overall scheme of things.

Thanks for saving me the bother of calculating 😉

Tiggsy

10,261 posts

251 months

Tuesday 10th September 2019
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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.
Nothing to do with 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
Hence why my ludicrous Tesla S is waiting till April !!!

Heres Johnny

7,175 posts

123 months

Tuesday 10th September 2019
quotequote all
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.
Nothing to do with 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
Hence why my ludicrous Tesla S is waiting till April !!!
I've debated the same but don't quite see the benefit for the amount of hassle. It has to go in to the company at a fair price and come out at a fair price (and you'd need to be able to prove that if the tax man came knocking) so while I can offset tyres etc, I'm not sure what the depreciation will really be, whereas I can claim about £4k in mileage as a private car. My maths say the car would need to cost over £8k in the year to offset the mileage and with Tesla already listing P90DL facelifts for 55k at the moment, if the depreciation was say 8k in the year they'd be virtually giving them away in 2 years..