Novice question - leasing electric through limited company
Discussion
Hi all... Apologies in advance as I'm sure this would've been done to death on here, but I'm unable to find a recent answer despite best effort and search function.
Will keep it as brief as possible. I am joint owner/director of a limited company. We have been trading for 3 years. The business involves a fair amount of travel.
I currently run a 69 plate Golf R estate, which is brilliant and have no reason to change. However, given fuel costs, BIK incentives etc, I'm fairly close to moving to leasing electric through the company.
My question is purely if there are any significant negatives or disadvantages which I should be taking into consideration?
I currently claim 45ppm (for first 10000 miles pa), and am fairly certain that this will cease if I go ahead with the lease. Is there a smaller amount I can still claim for ppm, towards charging costs etc?
Google searches seem to provide conflicting answers which I'm finding confusing. We do have an accountant, however they are away from work for a couple of weeks, and im keen to get a better understanding before FTK.
Have seen a deal in M3 AWD, in stock, which is fairly decent, though of course nowhere near the halcyon days of the S5 I got through this forum!
As always, any assistance is massively appreciated. Cheers.
Will keep it as brief as possible. I am joint owner/director of a limited company. We have been trading for 3 years. The business involves a fair amount of travel.
I currently run a 69 plate Golf R estate, which is brilliant and have no reason to change. However, given fuel costs, BIK incentives etc, I'm fairly close to moving to leasing electric through the company.
My question is purely if there are any significant negatives or disadvantages which I should be taking into consideration?
I currently claim 45ppm (for first 10000 miles pa), and am fairly certain that this will cease if I go ahead with the lease. Is there a smaller amount I can still claim for ppm, towards charging costs etc?
Google searches seem to provide conflicting answers which I'm finding confusing. We do have an accountant, however they are away from work for a couple of weeks, and im keen to get a better understanding before FTK.
Have seen a deal in M3 AWD, in stock, which is fairly decent, though of course nowhere near the halcyon days of the S5 I got through this forum!
As always, any assistance is massively appreciated. Cheers.
Hi, my understanding is as follows.
The ltd company can pay for the lease, deposit and and that is half VAT claimable. So 10%.
Servicing, tyres etc, can also be paid through company is full VAT claimable.
Basically the company leases/pays for the car.
You then have a benefit in kind, this is calculated via HMRC rates. Comcar will give you the rates. The BIK value is what you'll pay tax on. If it's £1000, for example, of you pay 20% tax, it will cost you £200 a year, or £16 a month. 40% payer will be £32 a month BIK.
https://comcar.co.uk/
Mileage, I think is 9p a mile currently, which the company can pay you without additional tax.
https://www.gov.uk/guidance/advisory-fuel-rates
Plug in hybrid cars, go off the petrol engine rate. But will have high BIK value.
Hope that helps
The ltd company can pay for the lease, deposit and and that is half VAT claimable. So 10%.
Servicing, tyres etc, can also be paid through company is full VAT claimable.
Basically the company leases/pays for the car.
You then have a benefit in kind, this is calculated via HMRC rates. Comcar will give you the rates. The BIK value is what you'll pay tax on. If it's £1000, for example, of you pay 20% tax, it will cost you £200 a year, or £16 a month. 40% payer will be £32 a month BIK.
https://comcar.co.uk/
Mileage, I think is 9p a mile currently, which the company can pay you without additional tax.
https://www.gov.uk/guidance/advisory-fuel-rates
Plug in hybrid cars, go off the petrol engine rate. But will have high BIK value.
Hope that helps
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