Anyone placed an Order for the Taycan yet?

[Taffy66]

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

[anonymous-user]

Digga said:

Simple. In the UK, most are bought through businesses and attract an exceptionally low BIK. 2 to 3% of purchase price.

Even a PHEV is 11-13% over next three years, so it's attractive, especially if you're gross pay hovers in between £100 and £150k where marginal rates are eyewatering.

Last time I ran a Range Rover Vogue through one of my firms was 20 years ago. It costs too much in BIK.

So instead of buying the car in your own name out of taxed income you buy it in your company's, but as you use it as a personal car it's a BIK so you personally pay 3% of the value a year in "bik tax"?

[Digga]

fblm said:

Digga said:

Simple. In the UK, most are bought through businesses and attract an exceptionally low BIK. 2 to 3% of purchase price.

Even a PHEV is 11-13% over next three years, so it's attractive, especially if you're gross pay hovers in between £100 and £150k where marginal rates are eyewatering.

Last time I ran a Range Rover Vogue through one of my firms was 20 years ago. It costs too much in BIK.

So instead of buying the car in your own name out of taxed income you buy it in your company's, but as you use it as a personal car it's a BIK so you personally pay 3% of the value a year in "bik tax"?

I'm assuming that's what people are doing, yes.

There is currently no fuel benefit tax, so therefore no personal use.

[RichardAP]

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

[anonymous-user]

Digga said:

I'm assuming that's what people are doing, yes.

There is currently no fuel benefit tax, so therefore no personal use.

Thanks Digga. As a PAYE monkey I've never really looked at any of this stuff.

[Anonymous-poster]

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

[RichardAP]

Anonymous-poster said:

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

It’s the same as pcp but in the name of the company..

[Digga]

RichardAP said:

Anonymous-poster said:

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

It’s the same as pcp but in the name of the company..

Several efficiencies/advantages:

Business can reclaim VAT on monthly payments
Business saves on corporation tax by reduced profit
Money is not taxed through PAYE

Mrs Digga's £75k iPace HSE, through company salary sacrifice PCP scheme, is costing her less than her previous £40k Evoque she was buying privately.

[Anonymous-poster]

Digga said:

RichardAP said:

Anonymous-poster said:

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

It’s the same as pcp but in the name of the company..

Several efficiencies/advantages:

Business can reclaim VAT on monthly payments
Business saves on corporation tax by reduced profit
Money is not taxed through PAYE

Mrs Digga's £75k iPace HSE, through company salary sacrifice PCP scheme, is costing her less than her previous £40k Evoque she was buying privately.

Sorry for being a bit thick but how is there a VAT element to the monthly payments on a purchase?

[Digga]

Anonymous-poster said:

Digga said:

RichardAP said:

Anonymous-poster said:

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

It’s the same as pcp but in the name of the company..

Several efficiencies/advantages:

Business can reclaim VAT on monthly payments
Business saves on corporation tax by reduced profit
Money is not taxed through PAYE

Mrs Digga's £75k iPace HSE, through company salary sacrifice PCP scheme, is costing her less than her previous £40k Evoque she was buying privately.

Sorry for being a bit thick but how is there a VAT element to the monthly payments on a purchase?

You (as a business) pay VAT on vehicles to buy and or lease. You cannot claim VAT back on purchase of a petrol or diesel car, but you can on a van or HGV.

Can can claim the VAT element of any lease, whether car, van HGV, whatever.

[Anonymous-poster]

Digga said:

Anonymous-poster said:

Digga said:

RichardAP said:

Anonymous-poster said:

RichardAP said:

Taffy66 said:

Digga said:

lot of fleet/business vehicles will be leased rather than bought, so I'm not sure they'd get full WDA but the BIK tax advantage is very clear.

If i was a LTD company i'd lease rather than buy outright. At least with leasing you can reclaim 50% VAT and still retain partly private usage.
When buying outright the only way to reclaim VAT is 100% with solely business use with no leeway for private use.
WDA at 100% FYA is better suited for SE business owners who pay the highest rate of income tax. With 19% corporate tax its better to lease and reduce BIK down to either 1-2% for EVs or 14% for PHEVs.

I found that the difference in pricing between leasing and pcp made doing it via a business pcp cheaper overall for my wife’s ltd company with all tax reliefs taken into account.

Didn’t buy one in the end due to needing a hatchback (so got an eqc) but even though I walk past loads every day at my local opc they look fabulous on the move and drive brilliantly so would definitely be interested in getting one in the future.

What’s a “buisiness PCP” ?

It’s the same as pcp but in the name of the company..

Several efficiencies/advantages:

Business can reclaim VAT on monthly payments
Business saves on corporation tax by reduced profit
Money is not taxed through PAYE

Mrs Digga's £75k iPace HSE, through company salary sacrifice PCP scheme, is costing her less than her previous £40k Evoque she was buying privately.

Sorry for being a bit thick but how is there a VAT element to the monthly payments on a purchase?

You (as a business) pay VAT on vehicles to buy and or lease. You cannot claim VAT back on purchase of a petrol or diesel car, but you can on a van or HGV.

Can can claim the VAT element of any lease, whether car, van HGV, whatever.

But PCP is not a lease!

[Digga]

Anonymous-poster said:

But PCP is not a lease!

Don't want to turn thread into business finance diversion, but: https://www.am-online.com/news/finance/2019/03/01/...

Disclaimer: I am a mech eng grad not a chartered accountant. Your home is at risk if you leave the gas stove on. etc. etc.

[Anonymous-poster]

Digga said:

Anonymous-poster said:

But PCP is not a lease!

Don't want to turn thread into business finance diversion, but: https://www.am-online.com/news/finance/2019/03/01/...

Disclaimer: I am a mech eng grad not a chartered accountant. Your home is at risk if you leave the gas stove on. etc. etc.

Cheers Digga.

[RichardAP]

Anonymous-poster said:

Digga said:

Anonymous-poster said:

But PCP is not a lease!

Don't want to turn thread into business finance diversion, but: https://www.am-online.com/news/finance/2019/03/01/...

Disclaimer: I am a mech eng grad not a chartered accountant. Your home is at risk if you leave the gas stove on. etc. etc.

Cheers Digga.

You would need to check fully with your accountant on the specific treatment but on the PCPs I have looked at there was no VAT reclaim, however depending on the pricing of different deals (and the balloon can be significant here) and the relative tax treatments will decide which is the cheapest. I found that a pcp was best on the taycan and on an EQC (0%) but lease was best on an ipace

[Digga]

RichardAP said:

You would need to check fully with your accountant on the specific treatment but on the PCPs I have looked at there was no VAT reclaim, however depending on the pricing of different deals (and the balloon can be significant here) and the relative tax treatments will decide which is the cheapest. I found that a pcp was best on the taycan and on an EQC (0%) but lease was best on an ipace

Amen to that! It's not straightforward simple.

[Taffy66]

When i looked at leasing my Taycan as opposed to PCP i couldn't find any competitive deals. A business may reclaim all the VAT back on a passenger car but it would need to be 100% business use with no private use element. In that instance the car could be paid for under a PCP and the whole VAT reclaimed from the outset. The PCP payments are not used to reclaim VAT unlike leasing where the VAT is added on top and can be reclaimed on a monthly basis.

[Dogbash]

Hi all, now considering purchasing a Taycan through my company due to the obvious tax advantages. Does the car have to be brand new to get the tax advantage or can it be a demonstrator for example? If it does have to be brand new, does anyone know the current wait time for a new vehicle?

Thanks

[Cheib]

Dogbash said:

Hi all, now considering purchasing a Taycan through my company due to the obvious tax advantages. Does the car have to be brand new to get the tax advantage or can it be a demonstrator for example? If it does have to be brand new, does anyone know the current wait time for a new vehicle?

Thanks

Don’t know about the Tax question but I think the answer is “not as long as you’d think” Here’s Delivery mileage car at OPC Silverstone, quite often OPC’s owned by the big dealer groups advertise cars on their own group websites like this one that are new/nearly new and not on the Porsche website. No idea if that car is registered or not.....I use OPC Silverstone myself if you want the name of a good sales person try Craig Porter. No affiliation etc...

https://www.sytner.co.uk/car-search/12281390-14637...

On this thread people have posted of ordering cars for a couple of months delivery so worth ringing round.

[MeisterH]

Cheib said:

Don’t know about the Tax question but I think the answer is “not as long as you’d think” Here’s Delivery mileage car at OPC Silverstone, quite often OPC’s owned by the big dealer groups advertise cars on their own group websites like this one that are new/nearly new and not on the Porsche website. No idea if that car is registered or not.....I use OPC Silverstone myself if you want the name of a good sales person try Craig Porter. No affiliation etc...

https://www.sytner.co.uk/car-search/12281390-14637...

On this thread people have posted of ordering cars for a couple of months delivery so worth ringing round.

Most if not ALL OPC's haver very Limited allocations for next year, 2020 delivery's were pushed forward somewhat.

[Triple Six]

Old man is considering a Taycan (likely 4S) due to BIK savings, trying to work out the best route to go i.e. lease/PCP.

The nail in the coffin is that he is currently racking up 24k miles/yr. Has anyone got a Taycan covering similar miles and mind sharing an idea of cost? Feel free to PM.

Thanks in advance