You're right. If you have your own company it does feel like a total no brainer right now. I cannot think of a single good reason NOT to go the company route. Especially as you can always buy it from the company later if you prefer to own it outright later if say the BIK goes back to 16% in 4 years (lets hope not).As above - I've purchased via my Ltd company using EST loan (6 years 0% interest)
100% write off in 1st year (then if/when you sell, profit comes back in)
0/1/2% BIK next 3 years.
no brainer for me
... as you can always buy it from the company later if you prefer to own it outright later if say the BIK goes back to 16% in 4 years (lets hope not).
Its a form of car tax i.e VED (vehicle excise duty) all cars with list price >£40k pay it for 5 years in years 2 to 6 ( first year VED is free) current rate £320. likely to go up by maybe £10 per year I expect.@Upgraded
aha - luxury road tax - definitely behind the curve on that one.
Any more detail on that please (seem to recall an @Upgraded search result is more accurate than Google)
There is no VAT rebate on Cars. you pay the full 20%. there are a few exemptions but trust me you won't quality they are very limited and strict.Is it 100% of the car cost? So car costs 36k you can claim a corporation tax reduction of 36k? I was under the impression it was just the corporation tax payment of 20% so you get the standard VAT rebate and then a 7.2k reduction in corporation tax.
Hi - Could some kindly soul with knowledge of such matters please update me on the latest UK tax rules and relative ownership (not cost of owning relatives!) costs for a Tesla purchased around now either as private or company (cash purchase not HP/PCP).
Great thanks. That was my understanding also but some of the posts on here seem to indicate you get 100% of the car cost back, not just the tax saving on corporation tax.Main benefit specifically compared to an ICE car purchased through a company
-100% write down
The benefit to buying through a company vs personally:
-Get to use pre taxed money for the car and expenses
-If you have excess funds in your company and you don't want to go into the higher tax bracket then its a good way to get a car without being taxed at the higher rate
The benefit to buying in cash is that you don't have to finance say at 4% whether its through HCP/Lease etc
some of the posts on here seem to indicate you get 100% of the car cost back, not just the tax saving on corporation tax.