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Model 3 bought through ltd company needs insuring

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I’m about to setup a Ltd company but unfortunately will have already purchased M3 (possibly as little as 2 weeks apart!). Can I sell my M3 to my company and then write the value of to save 20% corporation tax?

Why can you setup the company now then register it to the business straight away, you can sort out the payment part after ie if its funded by Directer funds. If you don't register it at first registration you can't claim the corporation tax saving.
 
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Can I sell my M3 to my company and then write the value of to save 20% corporation tax?

I would ask an accountant ... but my thoughts are:

Some of these tax concessions apply to new cars only
Car V5 needs to be in the company's name
Changing the V5 (i.e. within first year) will incur Luxury Tax (albeit that just moves the "starting point" for that forwards, so if you keep the car several years it will be cost-neutral)
 
Hi guys.
We’ve had our MX for 2.5 years now and I had an MS for 2.5 years before that too. Both are bought and owned by my own Ltd company. In addition, I drive an i8 (looking to replace with a Model3 Performance soon) which is also owned by my company. My expereince is this:

1. Make sure the V5 is in the company name. If you’re looking to claim your 100% FYA this is your evidence.
2. Don’t forget that at the point of sale you will owe HMRC 20% of the sale price too.
3. Insurance is for the driver. Always. There’s various ways of doing that, but I would struggle to justify my Ltd company paying for my car insurance so I have always sorted that personally. For info, I’m currently with Direct Line and have fully comp with business use.

Hope this is helpful, but feel free to ask me anything and I’ll see if I can help any further!
 
I would struggle to justify my Ltd company paying for my car insurance so I have always sorted that personally

My company pays for all costs relating to the car (and I pay Benefit-in-Kind tax)

I have two cars on the company (and pay BiK on both), the second is very low mileage and on the face of it would not make sense, but the actual running costs exceed the BiK so I'm happy). Accountant approved it all (quite possibly because the second car is used for business mileage if the first car is unavailable for any reason; I do 30,000+ miles a year, so reasonable to say that a car is important! which may have something to do with it being justified in my case)
 
My company pays for all costs relating to the car (and I pay Benefit-in-Kind tax)

I have two cars on the company (and pay BiK on both), the second is very low mileage and on the face of it would not make sense, but the actual running costs exceed the BiK so I'm happy). Accountant approved it all (quite possibly because the second car is used for business mileage if the first car is unavailable for any reason; I do 30,000+ miles a year, so reasonable to say that a car is important! which may have something to do with it being justified in my case)

Maybe I should use do that
 
I’m about to setup a Ltd company but unfortunately will have already purchased M3 (possibly as little as 2 weeks apart!). Can I sell my M3 to my company and then write the value of to save 20% corporation tax?
As far as I am aware, the 100% Writedown in the form of First Year Allowances on buying an electric car (as a way of reducing your corporation tax bill) only applies to NEW cars, not second hand ones, so I don't think your company buying it from you will qualify you for this unfortunately.
 
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I’m about to setup a Ltd company but unfortunately will have already purchased M3 (possibly as little as 2 weeks apart!). Can I sell my M3 to my company and then write the value of to save 20% corporation tax?
Ouch! Definitely check with your accountant as it’s a huge benefit & might be worth holding out a bit for your model 3 (tbf it’s probably going to be 3 weeks longer than they say anyway!). The guidelines say year one of a new electric car Vehicle Incentives
 
Is there any way to check what is going to end up on the V5? (in case you have forgotten :rolleyes:)

Is there any way to change it prior to pick up? Or at pick up?
Im struggling to get an answer on this too. It’s critical for insurance cover that it matches or cover is void (once made this mistake & was advised on renewal that any claim would not have been paid!). Owner - invoiced person or company Registered Keeper - name on V5. (Can be you or company) but don’t know how to get confirmation from Tesla which they’re using. Pick up tomorrow, no registration & no insurance yet
 
Hi everyone,

I bought my Model 3 P via my Ltd business and I'm picking it up from Birmingham on Friday.

Has anyone figured out how to insure a car owned by a UK ltd business? Do you need special company insurance and does the policy need to be in the name of my company or should it be in my personal name.

If it's special business insurance can you still deal with direct line, admiral etc, or is there some better options?

I'm sure there's a few of us in the same boat so thought I'd start a distinct thread.

Thanks,

Ben
Hi Ben, good luck today! I pick up from Birmingham tomorrow but panicking as no registration yet. When did you get yours?
 
need a profit though ... not sure how that will work with a brand new company, perhaps there is no tax to calculated until end of first financial year by which time that purchase can be offset against the profit at that time, and maybe the profit will be enough?
Yes, it’s not a payment you get back, rather an expense against your corporation tax that reduces what you pay at end of financial year. If it results in a loss, losses can be rolled over against the following year. (Just to re-iterate, this is my understanding I’m not an accountant, but it’s worth over £10,000 potentially so definitely worth checking out with one).
 
Hi guys.
We’ve had our MX for 2.5 years now and I had an MS for 2.5 years before that too. Both are bought and owned by my own Ltd company. In addition, I drive an i8 (looking to replace with a Model3 Performance soon) which is also owned by my company. My expereince is this:

1. Make sure the V5 is in the company name. If you’re looking to claim your 100% FYA this is your evidence.
2. Don’t forget that at the point of sale you will owe HMRC 20% of the sale price too.
3. Insurance is for the driver. Always. There’s various ways of doing that, but I would struggle to justify my Ltd company paying for my car insurance so I have always sorted that personally. For info, I’m currently with Direct Line and have fully comp with business use.

Hope this is helpful, but feel free to ask me anything and I’ll see if I can help any further!

The DVLA and the police say that V5 should be in the keepers name and it is NOT proof of ownership so for HMRC to say different would be very weird (not saying it's not true. i've seen more bizarre things in government) . Surely your invoice is the evidence for the purchase? I will be checking this with my accountant though so thanks for the heads up!

Point 2 only applies of course if you use the 100% FYA. If not HMRC probably owes you money when you sell since the normal capitol allowances do not reflect real world depreciation in most cases :)

On the insurance. If the car is an asset belonging to the company and the insurance is there to protect that asset then surely the insurance is ( at least in part if not whole) a company expense?
 
Yes, it’s not a payment you get back, rather an expense against your corporation tax that reduces what you pay at end of financial year. If it results in a loss, losses can be rolled over against the following year. (Just to re-iterate, this is my understanding I’m not an accountant, but it’s worth over £10,000 potentially so definitely worth checking out with one).
To be clear the 100% FYA is not actually a saving as such its a deferment. whether you use it or not you still end up paying exactly the same amount in tax in the end the difference is:
100% FYA claim all the tax back up front then settle up what you actually owe when you sell
Normal capitol allowance. pay all the tax upfront then claim back a percent every year. Settle up when you sell and you are probably owed money.

The difference is with the 100% FYI you get to keep/invest/rollaround in the money while you own the car. That has value since you can invest that money or earn interest on but you aren't just getting to keep £10K.

the biggest benefit is the low BIK this means you can have a car using company cash without having to either
a) take the money out and pay income tax
b)pay a BIK as if it were income

Given an ICE car of equivalent type would probably be BIK of 30% so a higher rate tax payer could be paying £6000 pa in tax! (50000*40%*30%). employers NI is also payable on this.
Instead you average 1% BIK over the next 3 years so that is £200pa
THAT is the real saving for a company.
 
I would struggle to justify my Ltd company paying for my car insurance so I have always sorted that personally.
So far as I can see there's absolutely nothing that needs justifying. Nobody's claiming these cars are wholly and exclusively for business purposes (and if they were, the VAT would be reclaimable). Rather provision of personal use of a taxed, insured, serviced vehicle is part of employee renumeration. And it gets taxed as such, albeit that the rate will shortly be rather advantageous.
Which reminds me, I need to get a P46(car) filled in.
 
I have two cars on the company (and pay BiK on both), the second is very low mileage and on the face of it would not make sense, but the actual running costs exceed the BiK so I'm happy). Accountant approved it all (quite possibly because the second car is used for business mileage if the first car is unavailable for any reason; I do 30,000+ miles a year, so reasonable to say that a car is important! which may have something to do with it being justified in my case)

Bizarrely, the current regime makes it more beneficial to have a company car the lower the business mileage (as a privately owned car can claim mileage allowance for business miles, while the BIK is unaffected by business miles). In the old days (20+years ago?), there used to be a lower rate for the BIK if you did a high business mileage (something like 10K miles/yr threshold, I can't remember), and there was a really punitive rate for having more than one company car for use by family members etc. The current scheme seems to assume that the BIK fully taxes the value of the car so there's no harm in you having as many as you want - which is probably true for ICEs, and is why many people gave up having company cars when the rules changed.

So far as I can see there's absolutely nothing that needs justifying. Nobody's claiming these cars are wholly and exclusively for business purposes (and if they were, the VAT would be reclaimable). Rather provision of personal use of a taxed, insured, serviced vehicle is part of employee renumeration. And it gets taxed as such, albeit that the rate will shortly be rather advantageous.

This is right. If the car were wholly used for business purposes, there would be no benefit and so no BIK tax to pay. So when you pay the BIK tax you are acknowledging that you get a personal benefit from having the car. For any ordinary benefit, the tax would be on the cost of providing the benefit, but for historic/policy reasons cars are treated specially and you pay tax on the 'notional' value of the benefit rather than the actual value. And it's very clear in the rules that insurance (and maintenance, but not accessories) are part of the benefit being valued.


Back on the subject topic (registration and insurance), I ran into one disadvantage of having the company as the registered keeper. I got a ticket from a speed camera; the car is registered in company name at an address where I get the post, so the ticket came to me. However, it said that as the car was in the company name I had to get the company secretary to declare who was driving on that day. In my case, the company secretary lives miles away; I was sorely tempted to just sign it myself, but the form had dire warnings about how doing that was an offence, so I had to post it to the company secretary, he sent it back to them and a new ticket came to me.

Likewise, insurance wasn't eased by registering it that way - if your company runs lots of company cars and has a multi-car policy then it's probably convenient to have them registered in company name, but for my case with one car and needing a new policy I found that nobody wanted to write a policy in the company name. Instead, the policy was in my name with the benefit assigned to the company.
 
Did anyone find a Tesla friendly insurer that will work with ltd company? I already have a mod'd van owned by my ltd company, it is insured through Adrian Flux. The company name is on the V5. I am doing the same with my model 3 when it arrives...
 
Did anyone find a Tesla friendly insurer that will work with ltd company? I already have a mod'd van owned by my ltd company, it is insured through Adrian Flux. The company name is on the V5. I am doing the same with my model 3 when it arrives...

As others have said, Direct Line is happy and the premium is unchanged from what it would be with personal ownership.

I wanted the car to have me as Registered Keeper, which is what I understand dvla to prefer. Tesla weren't cooperating and Direct Line said they expected the company to be Registered Keeper so that's how it turned out.

I've now got the insurance docs through and they make no reference to the company. I am personally down as the PolicyHolder and the schedule just noted that the PolicyHolder is neither the owner nor the registered keeper of the vehicle. I'm not particularly satisfied with this documentation, but they're not some tinpot outfit so it must be ok really.