Tesla Model S as a company car?
Discussion
I have my own ltd company. EV's are 0% BIK, and can can be 100% written off in the first year. Does this mean buying a 50k Tesla would save me 10k in CT in year 1? If so that would probably cover the 1st years depreciation!
It would also cost me nothing in BIK, save me 1000's in fuel (I currently do about 20,000 business miles a year). This could go some way to justifying me buying one
It would also cost me nothing in BIK, save me 1000's in fuel (I currently do about 20,000 business miles a year). This could go some way to justifying me buying one
98elise said:
As you write off the cost in the first year, the CT saving could make the car effecively free. Whats to stop you buying a new one each year and doing the same?
You pay less ct because the company makes less profit. It has still cost the company 50k. If you sell the car for 35k in year 2 you would have to pay ct on 35 because that would be all profit for that year. In the short term there will be a significant company car tax benefit though :-D98elise said:
It would also cost me nothing in BIK, save me 1000's in fuel (I currently do about 20,000 business miles a year). This could go some way to justifying me buying one
But you do all those 20,000 miles in one week and for the rest of the year the car does nothing.You know it's true!!!
Greg_D said:
98elise said:
As you write off the cost in the first year, the CT saving could make the car effecively free. Whats to stop you buying a new one each year and doing the same?
You pay less ct because the company makes less profit. It has still cost the company 50k. If you sell the car for 35k in year 2 you would have to pay ct on 35 because that would be all profit for that year. In the short term there will be a significant company car tax benefit though :-DCan you tell I'm not an accountant!
JonnyVTEC said:
What happens to the buffer if you buy a Tesla though?
Stop talking sense.....this is man maths at work .Seriously I could only justify it if the CT saving meant it cost about the same as running my current car. Given that my current car is an 02 mondeo then depreciation is the big factor in a new car. I do actually need a newer car as the mondeo is on its last legs.
Also the cash wouldn't be lost as it would be purchasing a company asset, and my contract looks like it will run until the summer so I can build a cash buffer again.
Edited by 98elise on Monday 30th December 16:39
Du1point8 said:
Hmmm the OH says we should get a car powered by electricity... If my company does well in March I think I might surprise her with a new car.
Just need to work out how to charge the bloody thing as not many charging points in central london when you live in a flat.
There are loads of charging points in London. Just need to work out how to charge the bloody thing as not many charging points in central london when you live in a flat.
https://www.sourcelondon.net/
Some car parks have charging points and do cheap season tickets for EV's.
98elise said:
Du1point8 said:
Hmmm the OH says we should get a car powered by electricity... If my company does well in March I think I might surprise her with a new car.
Just need to work out how to charge the bloody thing as not many charging points in central london when you live in a flat.
There are loads of charging points in London. Just need to work out how to charge the bloody thing as not many charging points in central london when you live in a flat.
https://www.sourcelondon.net/
Some car parks have charging points and do cheap season tickets for EV's.
JonnyVTEC said:
Did you go for it in the end?
I hope not. You'd be better off investing spare cash in property this year. Wait 3 years and then sell up and get a model III tesla. Just announced so I posted a thread. Yum yum. Think I shall go and buy a used XFR for 15k and have a last fling with petrol before they become available. I keep getting tempted to use my spare lot of cash lying around. Similar situation. Freelance IT contractor with Ltd company earning less than I did as permie. The pot is meant to be used to build some flats at some point in future. But these tax benefits on EVs are getting tempting now they are getting decent power and range. Think the tesla announcement is enough to hold me if a few more years. Phew!
The car is fantastic, my view would be not to delay!
In addition to the 100% write down in the first year you have VAT reclaimable if used solely for business purposes, no road fund license, no congestion charge, plenty of no cost refuelling. The capital cost may seem high but I think you will find the TCO compelling.
In addition to the 100% write down in the first year you have VAT reclaimable if used solely for business purposes, no road fund license, no congestion charge, plenty of no cost refuelling. The capital cost may seem high but I think you will find the TCO compelling.
JonnyVTEC said:
I might run it by the accountant for LTD co which is VAT registered on the flat rate scheme, just shame theres not another year of 0% BIK.
Would probably go down the lease option aswell. Co car mileage then is a bit of a hit compared to the rate you can use on a personal car.
If you are considering leasing - you might want to come off flat rate VAT considering it's about 1250 a month exc VAT so VAT is £250 a month. You can reclaim half the lease VAT if you are on cash accounting VAT. Would probably go down the lease option aswell. Co car mileage then is a bit of a hit compared to the rate you can use on a personal car.
Don't forget on flat rate VAT you can still reclaim full VAT on capital items over £2,000. Though I'm not sure whether it applies to vehicles. Can't see why not, but they sometimes get funny about vehicles as they aren't quite the same as stuff used to make more money like computers and machinery.
I'm sure your accounts will tell you to buy a i3 personally and claims the 45p a mile ;-)
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