EV Company Car
+ Reply to Thread
Page 1 of 3 1 2 3 LastLast
Posts 1 to 10 of 28

Thread: EV Company Car

  1. #1

    More time posting than coding

    Willapp's Avatar
    Join Date
    Mar 2012
    Location
    Norfolk, UK
    Posts
    292
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    3
    Likes (Received)
    54

    Default EV Company Car

    Thoughts on getting an electric vehicle as a company car?

    Am at the point where I've maxed my dividends already for the current tax year, so aside from pension contributions, looking for other productive ways of using the money accumulating in the company accounts (as well as reducing CT liability).

    Normally company cars are bad, I know, due to the hefty BIK implications. However until April, fully electric vehicles attract 0% BIK, rising to 5% for 2016/17, then 7% and 9% the following years (as I understand it). This makes an EV quite an attractive option IMO so just wondering who's taken the plunge on this already, or considering it, and any pros/cons to be aware of?

    As I understand it there is 100% capital allowance as well so the only cost to me personally will be the small BIK % from next tax year onwards.

    Thoughts?

  2. #2

    Contractor Among Contractors


    Join Date
    Sep 2009
    Location
    Tunbridge Wells
    Posts
    1,114
    Thanks (Given)
    27
    Thanks (Received)
    93
    Likes (Given)
    102
    Likes (Received)
    253

    Default

    Your OP makes me uncomfortable, as you make no mention of whether or not you need a new car, or whether an electric one would be suitable for your needs. Just that you've already done some of the more obvious tax efficient things and are looking for others. Don't fall into the trap of doing things primarily for tax reasons.

    That aside, sounds like you're aware of most of the rules, in particular that BiK rates will be going up so even zero emission cars will have BiKs soon.

    I personally think company cars are overrated. I wrote a blog post about this here. Couple of things I mention that you haven't discussed in your OP, might be worth considering.

  3. #3

    More time posting than coding

    Willapp's Avatar
    Join Date
    Mar 2012
    Location
    Norfolk, UK
    Posts
    292
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    3
    Likes (Received)
    54

    Default

    I didn't mention the need for the car as I assumed that went without saying , the motivation isn't primarily tax management but given the need for an additional vehicle would a company car make sense IF it was an EV.

    I did read your post though and it raises some very valid points such as the gradual increase in BIK paid on the full value of the car every year, even as it depreciates. Also about shutting the company down part way though a lease, I can see that causing a problem and it does take away some flexibility there.

    To be honest I was leaning towards not doing it anyway, but thought for a change I would see if anyone had positive things to say about it as it's a slightly different debate when considering the substantially lower BIK rates versus combustion engine vehicles.

    Plus I'd really like a Tesla lol

  4. #4

    Nice But Dim

    DaveB's Avatar
    Join Date
    Oct 2005
    Posts
    18,830
    Thanks (Given)
    42
    Thanks (Received)
    821
    Likes (Given)
    370
    Likes (Received)
    2452

    Default

    There was a point in the run up to the AS where it might have made sense to run a company car if all the proposed changes to to T&S went through. Balancing the company paying for running costs etc with BIK, and tax on expenses payments was somehting that looked worth exploring.

    Now thats gone away for the time being I wouldnt be in any rush to do it.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  5. #5

    More time posting than coding


    Join Date
    Jul 2015
    Posts
    257
    Thanks (Given)
    2
    Thanks (Received)
    9
    Likes (Given)
    2
    Likes (Received)
    75

    Default

    I think EVs are great, and something like the Tesla is a genuine alternative, though not many else are unless you live within a 30 mile commute... mine is 40 miles, so those with the more typical 100 mile range wont cut it as I won't make it to work and back in winter as range drops in the cold.

    When Tesla model 3 comes out i'll be looking at it carefully, as it should have 200+ range which will be more than enough for BMW 3 series money. Couple of years away yet though.

  6. #6

    More time posting than coding

    Willapp's Avatar
    Join Date
    Mar 2012
    Location
    Norfolk, UK
    Posts
    292
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    3
    Likes (Received)
    54

    Default

    Quote Originally Posted by Danglekt View Post
    When Tesla model 3 comes out i'll be looking at it carefully, as it should have 200+ range which will be more than enough for BMW 3 series money. Couple of years away yet though.
    Yeah that's pretty much where I'm at really. The BMW i3 with the range extender is an option as it can do ~180 miles which I think is the minimum range I'd want - even though my commute is short, eventually I'd sell my other car and only use the EV so it would need to have enough range that I could visit family or make it to Gatwick/Heathrow on a single charge, which is ~130 miles for me. Saying that I don't like the idea of still putting petrol in so the range extender is a nasty compromise I don't want to make, plus it's an expensive car for what you get.

    Hopefully the Model 3 will be everything it promises and at a more easily affordable level. Fingers crossed.

  7. #7

    Contractor Among Contractors

    portseven's Avatar
    Join Date
    Nov 2006
    Location
    the polling booth
    Posts
    1,163
    Thanks (Given)
    0
    Thanks (Received)
    3
    Likes (Given)
    5
    Likes (Received)
    19

    Default

    I am due a car change soon, my PCP is about 250 a month...

    Looking at a Tesla and trying to get things straight, I buy this through the company (prob on lease) works out to about 800 p/m to the company.

    The personal implication to me is about 160 p/m with BIK Tax.

    Seems a good deal imho... Am I missing a downside?
    Politicians are wonderfull people, as long as they stay away from things they don't understand, like working for a living!

  8. #8

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,976
    Thanks (Given)
    141
    Thanks (Received)
    1500
    Likes (Given)
    1794
    Likes (Received)
    6108

    Default

    Quote Originally Posted by portseven View Post
    I am due a car change soon, my PCP is about 250 a month...

    Looking at a Tesla and trying to get things straight, I buy this through the company (prob on lease) works out to about 800 p/m to the company.

    The personal implication to me is about 160 p/m with BIK Tax.

    Seems a good deal imho... Am I missing a downside?
    Would it not be worth considering how much of that 800 quid actually comes out of your pocket? I'm guessing you've already considered that are comfortable with it?
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  9. #9

    Double Godlike!

    stek's Avatar
    Join Date
    Oct 2009
    Location
    East of Eden
    Posts
    11,202
    Thanks (Given)
    4
    Thanks (Received)
    285
    Likes (Given)
    13
    Likes (Received)
    1538

    Default

    Quote Originally Posted by northernladuk View Post
    Would it not be worth considering how much of that 800 quid actually comes out of your pocket? I'm guessing you've already considered that are comfortable with it?
    +1

    It's just a dream, why spunk so much dosh, yours or company's on half a house that you'd spend 2hrs or so hours a day in. If that.

    Proper contractor car is some faded glory 10 year old exec car - used to be Rover 827 in my day, might be some left. If it breaks, get another. I had an Alfa 164 3.0 for four years, 1987, paid 100 for it, cost me nowt then it broke, got a 166 for 1.8k, another four years.

    60k for a car, FFS!!!

  10. #10
    eek
    eek is online now

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    22,619
    Thanks (Given)
    261
    Thanks (Received)
    1253
    Likes (Given)
    1068
    Likes (Received)
    3681

    Default

    The only reason why the tesla is on the radar as a company car was the fact that an ev car used to be offsetable against corporation tax. That meant it was 60,000 of revenue /profit that wasn't subject to corporation tax.

    That benefit (even if it still exists and I can't be bothered to check) was the reason for buying the car outright. I can't imagine there is any reason to lease one....
    merely at clientco for the entertainment

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.