Company car?

[Whistle]

Looking at getting a company car rather than supply my own and claim back 45p / 25p per mile. I do about 20k a year and currently run a Jag XF 2.2 diesel.

Looking for low bik hybrids, so far I have the following in mind.

Lexus 300H
BMW 530e

Anybody run any of these and what do you think. I am open to any other suggestions.

Thanks.

[Jag_NE]

530e by a mile.....what is the car allowance that you will surrender if you opt in?

[Whistle]

I don’t get an allowance I own the company.

BTW I am not powerfully built

[RammyMP]

Everyone I know who is self employed has had their accountant check if it is cheaper to run a car through their company and all of them said it isn’t and the 45p payment is better.

[ninjag]

I reckon the list price of that BMW will have a fair impact on the bik calculation but then as said you are only going to be able to claim 45p for half your mileage and then 25p for the rest if you go private.

[Whistle]

It would be leased via my company.

My other option is go out and buy a new ish Jag XF as I quite like it but the one I want is £25k for a 2016 model. This would be using my own cash that I have been taxed on.

[ZX10R NIN]

Take a look at the Infiniti Q50 hybrid it's a very good car & has low bik rates but is actually a decent steer with a very decent amount of go.

https://www.infiniti.co.uk/cars/new-cars/q50.html

Or go for a lightly used example (which is what I've done for a few clients & one family member) which will give you a significant saving off of list but they are hard to find.

https://www.autotrader.co.uk/classified/advert/201...

https://www.autotrader.co.uk/classified/advert/201...

[Muzzer79]

RammyMP said:

Everyone I know who is self employed has had their accountant check if it is cheaper to run a car through their company and all of them said it isn’t and the 45p payment is better.

This.

[Auto810graphy]

ZX10R NIN said:

Take a look at the Infiniti Q50 hybrid it's a very good car & has low bik rates but is actually a decent steer with a very decent amount of go.

https://www.infiniti.co.uk/cars/new-cars/q50.html

Or go for a lightly used example (which is what I've done for a few clients & one family member) which will give you a significant saving off of list but they are hard to find.

https://www.autotrader.co.uk/classified/advert/201...

https://www.autotrader.co.uk/classified/advert/201...

The infinity is much higher than the equivalent diesel so not really a contender.

The only cars in this sector that work are PHEV hence the success of BMW I-Performance models, Mercedes “350e”, Mitsubishi Outlander PHEV and Volvo T8.

[Fresh Air Ian]

I can't see how with your own company putting the car through it will be better.

Company would be paying:
The lease
The employers NI

You would then be paying Benefit in kind on the car as well as an employee of the company.

Double whammy basically as a company owner.

If it's your own company surely you have an element of dividend payment with capital gains tax only, which would make owning the car yourself a lower cost as well. Best to pay yourself an allowance and 'self-fund' and make the 45/25p claims I expect.

[ninjag]

Also worth bearing in mind bik is being hammered harder as each year passes, even the phev rates are climbing rapidly.

Will any potential saving be enough to have such a limited choice? Go private to get the car you want rather than a car you need.

[SpanishTony]

My accountant told me to not do it through the company when I asked.

or get a tesla.

[the_g_ster]

As noted, if you didn't own the company, 530e/330e/ C350e

As you do, don't commit yourself to the hassle and compunction from increasingly punitive company car taxation to get one of the above.

To be very very clear, the cars above are a tax avoidance measure....you'll get no more than 15 miles out of them, faff to charge, and once you look at your MPG you'll work out the battery pack is really just a ploy to get CO2's to he lowest level.

My c350e did 30-33 mpg without using a wall socket, they are heavy, and they are fast, unless your drive it like your grandma, you'll spend alot of extra money for a fast car that could be more accomplished in normal guise with you extracting funds via dividend etc.