Thank you for your reply. That's nice and clear. That's the numbers that I worked out properly on a spreadsheet. Duly noted it you sell.VAT and CT are two different questions and treatments.
Purchasing:
100% FYA which means the full cost is charged as an expense, reducing your profits and therefore CT.
Example, £100k profit, minus £60k Tesla, equals £40k profit. 40k @ 19% = £7,600 CT as opposed to 100k @ 19% = £19k, saving £11,400.
So your Tesla costs £60k minus £11,400 = £48,600 BUT
When you sell the car, you book the sale price as a profit and pay the prevailing CT (which will be higher now)
VAT - You can reclaim 100% if business use only, or nothing if it is available for personal use.
Leasing:
Lease costs are a business expense.
VAT - You can reclaim in full if business use only. or half the VAT if it is available for personal use.
Leasing after 4 years for example you then have £0 to show for it because the car has gone back. I normally lease.
For the VAT aspect, as it'll be 100% business. It'll be reclaiming 20% VAT of the 60k.
So rough total numbers. That would be;
60k - VAT (£10,000) = £50,000
60k - CT (£11,400) = £48,600
Potential cost > £60,000 - £10,000 (VAT) - £11,400 (CT) = £38,600 ?
Would that be right ?
Thanks.