EV Company Car
Discussion
I was wondering if anyone had any experience with running a battery EV as a company car (ltd. co, I'm the sole director and employee), or know of a good idiots guide that I could read on the subject?
From speaking with my accountant, I understand that the BiK is currently 0% for full EVs. The thing that I didn't fully get was how to pay for the car - I thought my options were lease or cash purchase, but they were suggesting that PCP would also be an option. I didn't even think that PCP was possible for a business?
Then there was the question of VAT - I understand that if the vehicle is available for personal use, I can reclaim 50% of the VAT. But is that for a lease or purchase? Also, I'm on the flat rate scheme, would I need to transition onto the full VAT scheme if I was leasing as the payments would be less than £2k a month!
From speaking with my accountant, I understand that the BiK is currently 0% for full EVs. The thing that I didn't fully get was how to pay for the car - I thought my options were lease or cash purchase, but they were suggesting that PCP would also be an option. I didn't even think that PCP was possible for a business?
Then there was the question of VAT - I understand that if the vehicle is available for personal use, I can reclaim 50% of the VAT. But is that for a lease or purchase? Also, I'm on the flat rate scheme, would I need to transition onto the full VAT scheme if I was leasing as the payments would be less than £2k a month!
BIK is 0% upto April 2021. Then it increase to 1% in 21/22. And further increase will come year on year I expect.
You cannot claim VAT back is you purchase the vehicle (assuming it is not a commercial vehicle). You can claim 50% of the VAT element if you lease the vehicle.
However if you lease the vehicle you cannot deduct the purchase from corporation tax in the 1st year which is the big benefit of purchasing an EV through a company. (A portion of this will have to be paid back when the vehicle is sold).
If you are speaking to your accountant about this why aren't you asking him these questions!
You cannot claim VAT back is you purchase the vehicle (assuming it is not a commercial vehicle). You can claim 50% of the VAT element if you lease the vehicle.
However if you lease the vehicle you cannot deduct the purchase from corporation tax in the 1st year which is the big benefit of purchasing an EV through a company. (A portion of this will have to be paid back when the vehicle is sold).
If you are speaking to your accountant about this why aren't you asking him these questions!
Just took on 3 model S through the company via contract hire.
As above on the BIK and we can reclaim 50% vat on the premiums. All premiums are allowable for Corp tax relief unless the rules have changed since I left this marketplace 8 years ago.
Trackers required and insurance is £10,600 for the year for the 3 cars.
Piss poor buying experience but the cars are amazing.
Purchasing was an option for enhanced capital allowances but we didn’t want to be stuck with 3 older cars in a fast moving technological environment.
As above on the BIK and we can reclaim 50% vat on the premiums. All premiums are allowable for Corp tax relief unless the rules have changed since I left this marketplace 8 years ago.
Trackers required and insurance is £10,600 for the year for the 3 cars.
Piss poor buying experience but the cars are amazing.
Purchasing was an option for enhanced capital allowances but we didn’t want to be stuck with 3 older cars in a fast moving technological environment.
Interested in this.
We have just switched to a salary sacrifice scheme. So, I am looking at a Taycan as well, or Polestar if it is too pricey.
As I understand it, my car allowance can be offset against tax, as it comes from gross salary, which makes this tempting.
I think it also means no BiK, such as it is.
We have just switched to a salary sacrifice scheme. So, I am looking at a Taycan as well, or Polestar if it is too pricey.
As I understand it, my car allowance can be offset against tax, as it comes from gross salary, which makes this tempting.
I think it also means no BiK, such as it is.
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