Tesla M3LR Lease

[happydonkey152]

Hello. Perhaps someone can help

Im self employed sole trader not vat registered. Im interested in leasing a tesla under contract hire as it seems the cheapest right now for me.

How does this work with tax? It will be used roughly 80% business and 20% personal.
My accountant is slightly unsure as she hasn’t dealt with electric vehicles before and is wanting to find out more info first.

If I claim actual use @80% does that just mean I can claim 80% of deposit and subsequent monthly payments?
Im struggling to find info on tax arrangements for self employed sole trader when its a PCH rather than PCP. Have never leased a car so this is very very new to me! Any info or help greatly appreciated!
Thanks

[Ken Figenus]

Good luck getting advice here mate - everyone is too scared to give "advice" and the topline chat you had with your accountant goes out the window when they start offering different finance options. I learnt so far for a Ltd:

Benefit in Kind is 1% tax on you for personal use for an EV.

Capital expenditure tax offset allowance is 100% in year one - fab - but you will need to pay back proportional tax if you sell it.

You cant claim purchase VAT back if its got any personal use and isn't left at the office overnight.

You CAN claim VAT back on monthly payments (prob minus personal use)

Some of the finance options for business do not have consumer protection like handing it back after paying off half.

You can get PCP or Contract hire - contract hire shows no asset on your books which the accountant may like/hate.

Its a bloody minefield!!! No wonder I've never put the works car actually through the business...

I'll keep plodding though - update here if you can.

[Pooh]

Sorry for the slight thread hijack, I am in a similar position of buying one through my business but I will be doing 30k miles per year and that seems to rule out most PCP and leasing options so I am not clear what is the most tax efficient/cheapest option.