Buying used EV through Ltd company
Discussion
Some context. Currently drive an ICE car, registered as a sole trader. I bought the car personally and simply claim mileage at the end of the year which contributes to some of the cost. Drive roughly 8,000 - 10,000 per year averaging around 30-35mpg (BMW 330i). Paying around £40 per month in car tax.
I've started wondering whether buying a used EV might work out cheaper, but the problem is that I'm struggling to figure out what savings could be made.
I'm switching to a ltd company from April onwards, and I've been looking at potentially getting a £35k used EV.
So, assuming I purchase the car using cash/loan, with a monthly payment of £600 over 5 year, how much of that could I potentially offset through work?
I'm aware that there'll be a 2% BIK to pay, but would the whole £7,200 per year payment be tax deductible?
I'm flat rate VAT, so I'm assuming I won't be able to claim VAT? If I switched to the standard VAT rate, would I be able to claim VAT back on the purchase?
We'll be charging at home, so I've already worked out that at 10,000 per year there's an £80 per month saving, plus a saving of £40 vehicle tax.
I've done some research online, but there's little out there about purchasing a used EV, most articles focus on buying new or leasing.
I've started wondering whether buying a used EV might work out cheaper, but the problem is that I'm struggling to figure out what savings could be made.
I'm switching to a ltd company from April onwards, and I've been looking at potentially getting a £35k used EV.
So, assuming I purchase the car using cash/loan, with a monthly payment of £600 over 5 year, how much of that could I potentially offset through work?
I'm aware that there'll be a 2% BIK to pay, but would the whole £7,200 per year payment be tax deductible?
I'm flat rate VAT, so I'm assuming I won't be able to claim VAT? If I switched to the standard VAT rate, would I be able to claim VAT back on the purchase?
We'll be charging at home, so I've already worked out that at 10,000 per year there's an £80 per month saving, plus a saving of £40 vehicle tax.
I've done some research online, but there's little out there about purchasing a used EV, most articles focus on buying new or leasing.
Interested in this also as I'm switching from sole trader to Ltd Co this month (though VAT doesn't apply due to industry).
I've set up a meet with my accountant later next week to discuss this amongst other things - will post up anything useful unless anyone chimes in and covers it off beforehand.
I've set up a meet with my accountant later next week to discuss this amongst other things - will post up anything useful unless anyone chimes in and covers it off beforehand.
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