Salary sacrifice ULEV / company car ULEV
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    Default Salary sacrifice ULEV / company car ULEV

    Anyone here doing this with a reasonably expensive vehicle? There isn't enough money in the business to buy it outright, but it appears there are some fairly good tax efficiencies if one combines them - there are also some awesome hybrids about compared with a year or two ago, not forgetting the Tesla option.

    Struggling to find information on exactly how you would combine the purchasing and repayment options (salary sacrifice == contribution reducing BIK right, and business can get 100% corporation tax relief on the full cost of the vehicle even if doing hire purchase??)

    Yes I should probably search, and / or ask my accountant, but it'd be nice to hear some opinions.

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    Reading this at the moment, but it doesn't deal with the BIK reduction / salary sacrifice aspect: https://comanandco.co.uk/company-cars

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    Quote Originally Posted by SeanT View Post
    Yes I should probably search, and / or ask my accountant, but it'd be nice to hear some opinions.
    My opinion is yes, you probably should.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    Quote Originally Posted by northernladuk View Post
    My opinion is yes, you probably should.
    So incredibly reliable

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    Whilst you probably should get advice from a tax professional (likely your accountant) - it would be interesting to hear any info you discover or info others already know - it's too easy to close down discussion (and get a stupidly high post count) by just replying to everything with "have you asked your accountant" - dull, predictable and contributes sweet FA to a discussion


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    I now realise that salary sacrifice is not what I'm looking for at all. It seems I can buy a 50g/km hybrid (I'm now liking the look of the 740e M Sport and have arranged a test drive) and pay a fairly tiny amount of BiK on it, even if I leave this until after April. It won't be as cheap to use as a company car as say a Tesla would be from 2021 onwards, but the EV / hybrid market seems likely to have changed quite significantly by then. Much as I want a Ludicrous Model S I don't like the idea of running out of juice - and it's probably 50% more to buy it. I was leaning towards a Panamera yesterday but if I can't get it before April I could be screwed for first year allowances and the associated cashflow benefit (which is what I'm chasing here).

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    Quote Originally Posted by SeanT View Post
    I now realise that salary sacrifice is not what I'm looking for at all. It seems I can buy a 50g/km hybrid (I'm now liking the look of the 740e M Sport and have arranged a test drive) and pay a fairly tiny amount of BiK on it, even if I leave this until after April. It won't be as cheap to use as a company car as say a Tesla would be from 2021 onwards, but the EV / hybrid market seems likely to have changed quite significantly by then. Much as I want a Ludicrous Model S I don't like the idea of running out of juice - and it's probably 50% more to buy it. I was leaning towards a Panamera yesterday but if I can't get it before April I could be screwed for first year allowances and the associated cashflow benefit (which is what I'm chasing here).
    Although BIK rates are increasing, for expensive vehicles the savings from the 100% tax write-down should still represent a huge saving over purchasing the car personally after CT & dividend taxes, and taking the mileage allowance.

    The only exception could be if you're both doing high mileage and somehow paying dividend tax at basic rather than higher rate, while funding a 75k purchase from said dividends. That is possible when spreading cost over several years, but doesn't leave much for a lifestyle consistent with a 75k car

    Also, you may want to add Jaguar i-Pace to that list if you can wait until mid-2018.
    Last edited by Zylon; 10th November 2017 at 01:03.

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    Quote Originally Posted by SeanT View Post
    I now realise that salary sacrifice is not what I'm looking for at all. It seems I can buy a 50g/km hybrid (I'm now liking the look of the 740e M Sport and have arranged a test drive) and pay a fairly tiny amount of BiK on it, even if I leave this until after April. It won't be as cheap to use as a company car as say a Tesla would be from 2021 onwards, but the EV / hybrid market seems likely to have changed quite significantly by then. Much as I want a Ludicrous Model S I don't like the idea of running out of juice - and it's probably 50% more to buy it. I was leaning towards a Panamera yesterday but if I can't get it before April I could be screwed for first year allowances and the associated cashflow benefit (which is what I'm chasing here).
    I had a Tesla S for a test drive part of a weekend and while at first I loved it, super-fast, super-quiet, after literally half a day novelty wore off, could see if for what it is, and expensive, extremely heavy, battery-on-wheels with a tacky interior.

    Bought an older pre-depreciated Maser instead, I get a boner just looking at it and QP's are generally pretty reliable...

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    Quote Originally Posted by Zylon View Post
    Although BIK rates are increasing, for expensive vehicles the savings from the 100% tax write-down should still represent a huge saving over purchasing the car personally after CT & dividend taxes, and taking the mileage allowance.
    Exactly, I'm wondering when the 100% FYA for ULEV will be abolished completely, they already dropped it to 50g/km from April '18

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    Quote Originally Posted by stek View Post
    I had a Tesla S for a test drive part of a weekend and while at first I loved it, super-fast, super-quiet, after literally half a day novelty wore off, could see if for what it is, and expensive, extremely heavy, battery-on-wheels with a tacky interior.

    Bought an older pre-depreciated Maser instead, I get a boner just looking at it and QP's are generally pretty reliable...
    Ah yeah, I have an E46 M3 for tulips and giggles, but would like something newer for once (the newest car I've ever owned was made in 2008). Also appear to have accumulated six cars in total, so one of the existing ones will have to go!

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