E company cars in 2020 - no brainer?
Discussion
Just sorting out a car lease and always budget around £500-600pm plus petrol and another £200 ish.
For my (own) ltd company to pay me that £800 costs loads more (i'm into additional rate tax)
Always avoided a company car due to BIK costs but in 2020 when they go to 2%.........I can lease/buy a car at way over £1k pm and (with little tax and no petrol) be quids in?
Do I start picking the spec on my I pace or X now or have I missed something obvious?
For my (own) ltd company to pay me that £800 costs loads more (i'm into additional rate tax)
Always avoided a company car due to BIK costs but in 2020 when they go to 2%.........I can lease/buy a car at way over £1k pm and (with little tax and no petrol) be quids in?
Do I start picking the spec on my I pace or X now or have I missed something obvious?
Yes business owners would be mad not to take advantage of this.
Beware the real world mileage limitations of an EV, especially in winter, but otherwise its a no brainer.
I understand that the I Pace isn't that good on real world range
Hopefully by 2020 there will be a much greater choice of cars.
Beware the real world mileage limitations of an EV, especially in winter, but otherwise its a no brainer.
I understand that the I Pace isn't that good on real world range
Hopefully by 2020 there will be a much greater choice of cars.
There is a relatively new rule that if the BIK tax would be lower than the income tax payable on the salary sacrifice for the car or the cash equivalent to taking the car then the higher amount must be paid.
I have not looked into this in detail to see how it works when the cash equivalent could be very low or whether HMRC would take the lease cost as the equivalent salary sacrifice.
Edit: Found this link
https://www.clm.co.uk/company-car-tax/
which indicates that EVs are exempt from this new tax rule.
I have not looked into this in detail to see how it works when the cash equivalent could be very low or whether HMRC would take the lease cost as the equivalent salary sacrifice.
Edit: Found this link
https://www.clm.co.uk/company-car-tax/
which indicates that EVs are exempt from this new tax rule.
Edited by Scrump on Friday 10th August 13:06
Tiggsy said:
Superb!
I hardly ever go more than 100m in a day at the most.
I live in Reading and see clients that are normally no more than 30 Mins away. Occasionally I go off on a trip or whatever but can plan around that.
Result!
Yep, sounds good. By then the Tesla S will be refreshed and the 3 here if either of them are of interest. Possibly the Porsche Taycan and Audi etron too. Getting a firm delivery might be the biggest challange (except for the S and X which are 3/4 months generally)I hardly ever go more than 100m in a day at the most.
I live in Reading and see clients that are normally no more than 30 Mins away. Occasionally I go off on a trip or whatever but can plan around that.
Result!
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