Company car tax - electric vehicles

[Zigster]

Hi all,

I can’t quite work out how electric company car tax interacts with the loss of personal allowance from £100k-£125k.

Say I earn £100k basic with no other benefits except for a Tesla 3 with RRP £50k. Do I still get the full £12,500 personal allowance or is it reduced for the BIK value of the Tesla? That is, is the P11D value of the Tesla zero or is it something more than that even if the actual tax cost is nil at the moment?

Does that make sense as a question?

I often see “advice” to pay extra pension contributions for those earning a little over £100k but I don’t think I’ve seen anything which suggests an electric company car would also get this 62% tax saving.

Thanks

[anonymous-user]

The P11D value is £50k or whatever. It is the BIK percentage that is (currently) zero (1% next year, then 2%)

[Zigster]

Sorry for the slightly flaky terminology on my part.

So in the example of a salary of £100k and a Tesla company car, the gross taxable income would be £100k and thus the full Personal Allowance of £100k would be retained?

[GTiWILL]

If the benefit in kind is 0%, the cash equivalent is 0. Therefore your personal amount is left untouched.

To answer your question in a word; yes.

[Jockman]

The P11D figure will be added to the £100k, in your example. Not the car value.

The P11D figure is zero for this tax year.

[Whistle]

Can’t really add anything constructive but the tax on my 530e is a lot less than I anticipated.

[Zigster]

Thanks all.

[rfisher]

Out of interest, what line of work pays £100k and uses a £50k Tesla as a company car?

I may need to retrain.