Just wondering if anyone has done this? Obviously the car is mainly used for non-business purposes so BIK applies. Looking at business hire purchase (1500/m for 36 months and pay it off sooner) and for the first 2 years whilst the BIK is 2% keep the car in the company. After 2024/2025 if BIK rates increase to an unacceptable level - sell the tesla to myself or gift it (which one is better? I understand the second option incurs BIK tax). This way at least for the first two years I would save on insurance + depreciation on the car effectively goes through the company hence saving me personally at least £10k
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Buying a Tesla through the business
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this is asked every month or so. Look through the forums to see as all answers are there.
See You Next Tuesday -
Originally posted by Lance View Postthis is asked every month or so. Look through the forums to see as all answers are there.Comment
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You need to do a bit of researching before jumping in with a question. For a start electric and teslas have been asked a lot on here. Plenty of articles on the web, your accountant can help you and you can use the forum search in google. Type <keyword> site:forums.contractoruk.com to find them.
Some might think I'm being a bit harsh telling you to put an ounce of your own work in first but later on you ask ;sell the tesla to myself or gift it (which one is better?;. You really think you can gift yourself the car? Need to understand what you do a little better than that when you are looking at putting 65k+ cars through your books.
Also don't forget you are tied in to the company and it could wipe any tax savings out if you have to close the company and dispose of the car before your projections.
There is also the fact the electric discounts could disappear at a moments notice but, to be fair, that's guessing at the moment. Just be aware.
If you are going to buy a Tesla anyway you need to do a bit more research, if you just want to put a car through the company then a tesla is an expensive choice and you could have saved more getting something else not through the company.
Even with the low rates for electrics many accountants will still advise not to put cars through the company.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by greenpower112 View Post
Ok, if I do buy a tesla through the business - the company owns the car. So let's say a wheel pops - the company pays. How far does that extend though? I got a quote for £3300 for matt black wrap just now - can the company pay for car modifications as well?Comment
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Originally posted by ladymuck View Post
Do the car modifications pass the wholly, exclusively and necessarily test?
Just wondering how any car modifications work. Can company pay for them and then I pay BIK tax on those as well?Last edited by greenpower112; 22 March 2022, 14:14.Comment
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Originally posted by greenpower112 View Post
The car itself doesn't pass that test - hence the BIK tax, right? The car is mainly used by me personally - I only make 4-5 business trips a year. But that's why we take the advantage of the low BIK tax on electric cars.
Just wondering how any car modifications work. Can company pay for them and then I pay BIK tax on those as well?
Also, if you are going to take the piss then it's generally another reason not to do it.
Have you checked the VAT out and how that works?
Also remember you are asking a bunch of contractors here. If you are going to modify it and the like you are better off speaking to your accountant who knows your exact situation and about the VAT/Tax.Last edited by northernladuk; 22 March 2022, 14:30.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Or buy/lease the damned thing yourself and charge the company for using it. Which is by far the more sensible, risk-free way.
Wrapping isn't a modification anyway, it's a cosmetic. You can take it off any time you like.Blog? What blog...?Comment
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Originally posted by greenpower112 View PostJ...Looking at business hire purchase (1500/m for 36 months and pay it off sooner) ...
It's not like a personal contract.
As for wrapping it, that would not be part of the hire purchase agreement.
…Maybe we ain’t that young anymoreComment
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I could be wrong but if the OP is looking at his business to buy a bigger and better car plus modifications than he would buy normally isn't good budgeting. Yes there are tax breaks but that's only taking the sting out of something he wouldn't buy normally and it will still cost him at the end of the day. And then there is the depreciation and buying it off the company which gets taxed on and so on and so forth. It's rarely a good idea to look at the company as a means to get something you couldn't or wouldn't normally buy. Keep a level head and don't get carried away in the heat of the moment just because you think you can step your motor up to a level you didn't think you could before.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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