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Buying a Model S through a VAT registered UK business.

Discussion in 'Model S: Ordering, Production, Delivery' started by nexsuperne101, Jul 14, 2016.

  1. nexsuperne101

    nexsuperne101 Member

    Joined:
    Apr 12, 2016
    Messages:
    205
    Location:
    London, England
    I went and had a test drive of a Model S yesterday, as I have a Model 3 reservation and wanted to see what all the hype was about. The bottom line is that I am now seriously looking at buying a brand new 60D MS, with AWD, next gen leather and Pano roof.

    The cost is £61,300 (+380 delivery fee). Normally I would buy the car on finance and then pay for it through my mileage allowance (£7000 per annum on 20,000 miles). It will be used for 100% business as I have access to another car for private use if I ever need it.
    At the moment, my company is not VAT registered, as I just see it as another paperwork headache, however, if I could lose the £11,000 of VAT then that would persuade me to register. I have a mix of both domestic and VAT registered clients, so where I would have to swallow the VAT on the domestic side, I can recover a bit on the registered businesses.

    Where do I stand on this?

    Thanks for any help
     
  2. NullException

    NullException Member

    Joined:
    Jun 27, 2016
    Messages:
    150
    Location:
    UK
    disclaimer: I am not an accountant.

    If your business isn't VAT registered today, I'm guessing your turnover is less than £150k per year? If that's the case, the VAT Flat Rate Scheme - GOV.UK may work well for you - depends on your company's expenditure whether you win or lose on that scheme. It does allow you to reclaim the full VAT on one-off capital purchases.

    You'll need to look into the BIK implications too, which are pretty good for EVs.

    I recommend you talk to your accountant to work out the best option for your business.
     
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