Figs look good on first glance,
I did spreadsheets for all of this when working out the various options, but also have a half decent accountant who highlighted some other marginal savings.
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Buy Tesla through private limited company
- Thread starter adambg
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I did spreadsheets for all of this when working out the various options, but also have a half decent accountant who highlighted some other marginal savings.
Do any of you have any view on whether getting car insurance is any more expensive if doing it through the business? I mean purely from a premium/excess point of view, not thinking about tax savings.
I’m currently with Admiral on a family multi-cover thing and I got a quote from them for when I get the MYLR and they want about £2000 per year. I guess I need to go and get quotes if doing it via business. Any recommendations?
I’m currently with Admiral on a family multi-cover thing and I got a quote from them for when I get the MYLR and they want about £2000 per year. I guess I need to go and get quotes if doing it via business. Any recommendations?
Mine is insured on a personal policy, but with business use.
Direct Line, £400.
Premium paid on company credit card....
There was talk on another thread of getting a business policy etc, but that's overkill and not necessary. The car is already available for personal use so a personal policy with business use specified is adequate. (and cheaper)
WannabeOwner
Well-Known Member
(Theoretically) Is that profit something you would be expected to declare on your tax return?
I think the norm would be for someone to then buy another car. If you sell the old car at the price you bought it at then seems likely that a new one would be more expensive ...
But in the scenario where you "cash in" at that point then there is that issue to consider.
WannabeOwner
Well-Known Member
Interesting. DL wouldn't give me a quote for company-car, personal policy with business use. I'll make sure to try them again at renewal.
Good point. I think under normal circumstances where I would be continuing with my Ltd company for the foreseeable future, and if every time I sold a car I immediately buy a new one., well in these cases the tax 'savings' just keep cancelling each other out as time goes on. But I have concluded (pending accountant confirmation!) that my situation may be slightly different in that I plan to shut down the company in about 3-4 years, sell the car, and leave the country. No idea what I'll do when we move but by then I will have genuinely gained from some tax efficiency due to the low 10% rate you pay for Entrepreneurs Relief.
Re; insurance. I won't actually be using the car for business. It will be entirely for personal use. My accountant said "With the car being owned by the company, you can take out business car insurance which would cover you as an individual to drive the vehicle". This obviously seems worthwhile because it will reduce my CT bill and I'll get the dividend tax savings from not having to withdraw money to personally pay for insurance.
I just have to get a business quote and compare it with my personal quote and decide if it's worth it based on cost vs tax savings.
Had no issues here in going to quote for personal policy, selecting company leased, and selecting business use.
For company assets you record the purchase price (in this case the car attracts 100% FYA), and then the disposal price.
You'd then be liable for CT on the disposal price received.
If it was personally purchased and sold then no, no CGT due on personal car sale.
As far as I understand it, I have to sell the car if the company closes down. I could sell it to myself, but would have to be at market value. I don’t know legally what other options there are (if any)
Well said and that’s a very good point worth noting, with proceeds going back to the company with the new rates the amount you pay back could be more than the relief you got initially.
My plan was always to sell the car to myself at some point down the line. But like a lot of people have done, with the trade in values being so high I’m treating myself to a newer one as my one is now worth more than I bought it.
I can’t help but thinking it’s a sweet spot to buy electric cars now. As the years go on, the 100% first year allowance will no doubt go and BIK rates will creep up for sure.
Good luck with whatever you decide to do
rectofossa
Member
My 2p worth…
Faced with a large corp tax bill it was a no brainer to give it to Elon rather than Rishi. 100% FYA. 1% (now 2%) BIK. We put all the vehicle-related Xs through the business.
Couple of notes: £400 ins via Direct Line. Noted on policy that comp is owner. DL very cooperative and clearly are used to this - provided it’s not a pool car and it’s just me and the Mrs driving they’re v relaxed.
On the write down if selling, accountant has said if we have a policy of a 5yr straight line write down, this is unlikely to flag with HMRC. Clearly this presents an opportunity for arbitrage but I’ll take further advice if going that way! On that score, were we selling it’d be against the purchase of a new Tesla so I’m relaxed about how that would wash through the balance sheet / P&L.
As I say, for us it was a no brainer. I have a M3 SR+, Mrs now has M3 RWD (she did briefly have e208 but quickly realised the non-Tesla charging infrastructure is beyond shite). Enjoy!
Faced with a large corp tax bill it was a no brainer to give it to Elon rather than Rishi. 100% FYA. 1% (now 2%) BIK. We put all the vehicle-related Xs through the business.
Couple of notes: £400 ins via Direct Line. Noted on policy that comp is owner. DL very cooperative and clearly are used to this - provided it’s not a pool car and it’s just me and the Mrs driving they’re v relaxed.
On the write down if selling, accountant has said if we have a policy of a 5yr straight line write down, this is unlikely to flag with HMRC. Clearly this presents an opportunity for arbitrage but I’ll take further advice if going that way! On that score, were we selling it’d be against the purchase of a new Tesla so I’m relaxed about how that would wash through the balance sheet / P&L.
As I say, for us it was a no brainer. I have a M3 SR+, Mrs now has M3 RWD (she did briefly have e208 but quickly realised the non-Tesla charging infrastructure is beyond shite). Enjoy!
After all the back-and-forth with the accountant and really helpful posts on this thread, I've decided it is worth switching my purchase to a company purchase. So I just emailed Tesla and they changed the details on my account from me to my company, and allowed me to re-apply for finance through my company, which I've just submitted. Decided to go for a HP arrangement instead with a larger deposit because I have some money in the company account lying around.
The price of the car has gone up £1k since I ordered but they are honouring the original price. And the interest rate hasn't increased since I ordered so that's a bonus. My EDD is (and has been for just over a week) Sep 4 - Oct 19, so hoping that doesn't get negatively affected by the change.
Nearer time of delivery I'll have to look into getting car insurance through the company which I've never done before.
Thanks to all for the help and advice!
The price of the car has gone up £1k since I ordered but they are honouring the original price. And the interest rate hasn't increased since I ordered so that's a bonus. My EDD is (and has been for just over a week) Sep 4 - Oct 19, so hoping that doesn't get negatively affected by the change.
Nearer time of delivery I'll have to look into getting car insurance through the company which I've never done before.
Thanks to all for the help and advice!
rectofossa
Member
Careful - if it’s a quote for fleet insurance you’ll prob need a lie down in a dark room with a very stiff drink when they give you the numbers.
With DL (who I’ve been with for years) the conversation was “I’m buying it via the company so that’s on the V5 but it’s ‘my' car“ and all was fine. It’s noted on the policy that “the insured is not the owner or the keeper” (can’t be arsed digging out precise form of words, soz) but I think this is a road well travelled with insurers. Just make sure you can evidence you’ve told them the legal owner and name on the V5 is LtdCo.
DL’s main qualifier was provided it's just you and the Mrs (also a Director) and it’s not a pool car all is good. Still counts as ‘my’ policy for no claims discount etc. And I just put the bill through the P&L as a motor vehicle expense.
If you're leasing then the funder is on the V5. For insurance purposes, it does not matter, so long as you tell them.
rectofossa
Member
I thought that but the accountant said that to claim 100% FYA the car needs to be in the name of the company and on the V5 as new.
The ‘new’ bit is interesting; if you buy an ex demo from Tesla I believe the paperwork would say ‘new’ because the OEM owned the car and not a dealership?
The owner is your company name, the registered keeper is you.
The car has to be classed as new to qualify for 100% FYA write down. Ex-demo wouldn't be new. You need to be the first person to be registered to the car, the first owner on the log book, which ties back into the owner being your company.
The car has to be classed as new to qualify for 100% FYA write down. Ex-demo wouldn't be new. You need to be the first person to be registered to the car, the first owner on the log book, which ties back into the owner being your company.
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