My first company car but a hybrid ? worth it ?
Discussion
I have a BMW 330e and it's excellent. I've done about 1,000 miles so far and spent around £50 on fuel. However, my commute is a short drive to the station, so entirely electric. So it depends on your situation slightly. Having said that, BIK is significantly lower than an ICE car, so this could save you a significant amount in tax. For your budget, I'd be looking at a Tesla model S - much greater range, huge performance and lower tax -,what's not to like? Also, Chargemaster are promoting charging at work, so if you can persuade your company to install a charging point at the office, then that would open up an even greater range (as you can charge up at work).
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I got a bmw i3 just before Christmas. This after spending five years constantly thinking about getting a car through my company. Benefits? Well leccy per mile is working out at just under 4p (and I get that tax free from the company), have contract hire for 17k miles pa costing about £400 per month and this year's tax on the company car will be around £1k total (7% x list price x 40% tax). The total post tax cost per mile will be under 30p and that is pretty close to giving me break even on using the LR D4. Got it really because my mileage went up from 14k miles to 29k miles and didn't want to do that many in the D4.
But benefit charge over next few years will be (this is from memory so might be a bit out) 9%, 13% and 16% (not sure if have missed an 11% out... Anyway tax saving getting a lot less. The lower the total annual mileage you do the less worthwhile it is. Over the three year contract I am ahead but not sure if it will be worth getting another. A 20k golf might be just as cheap in tax due to lower list price
But benefit charge over next few years will be (this is from memory so might be a bit out) 9%, 13% and 16% (not sure if have missed an 11% out... Anyway tax saving getting a lot less. The lower the total annual mileage you do the less worthwhile it is. Over the three year contract I am ahead but not sure if it will be worth getting another. A 20k golf might be just as cheap in tax due to lower list price
lexi 1 said:
Thank you for all the replies has anyone else actually done it and what were the benefits ?
Your accountant will be better placed to advise on the financial benefits such as 100% WDA, lower BIK etc. The savings for me were substantial when I bought my i8.The car benefits of a hybrid are lower running costs, quieter/smoother journeys, Eco-smugness and the knowledge that you've left the 20th century behind
MrOrange said:
Your accountant will be better placed to advise on the financial benefits such as 100% WDA, lower BIK etc. The savings for me were substantial when I bought my i8.
The car benefits of a hybrid are lower running costs, quieter/smoother journeys, Eco-smugness and the knowledge that you've left the 20th century behind
I have thought of three possible cars I8/XC90 T8 or Tesla sorry to be dense but what is wda and bik The car benefits of a hybrid are lower running costs, quieter/smoother journeys, Eco-smugness and the knowledge that you've left the 20th century behind
As others have mentioned, the benefits of having an electric or hybrid as a company car will get significantly worse over the next few years as the BIK tax rates get hiked. The government aren't stupid and really can't afford a dip in tax take. As soon as the uptake of electric became a reality, they have done and will continue to make them less attractive in terms of tax breaks.
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