Not sure if its different where you are buy in the UK if buying outright and have personal use on a company car then you can’t claim any VAT back so not 10%, only in the case of if its leased The VAT on £50k is £8333.33 not £5k, if you aren’t eligible to claim the VAT back on the car then the total cost is still the full price of £50k which can be dedicated against the corporation tax for that year so 9.5k in this example.
Hi Lesley, thanks for your comment! It is about half price give or take a little each way. Your mileage may vary a tad depending on your personal and business circumstances. But yes, it’s a considerable saving on a new electric vehicle, and this works with any zero emission car - not just Tesla.
Thank you for your reply! No tax cleverness is needed - as I touched on in my video - the 0% BIK (now 1% in the UK) is intended to drive the adoption of zero emission vehicles as company cars. I’m happy to chat further, either in the comments or offline (my contact details are in my channel). Thanks again for taking the time to watch my video - it is appreciated! :)
@@DivingDeveloper you say there is “not tax cleverness” needed but the there is a lot of paperwork involved here and it would be complicated for someone without an accountant or tax advisor to assist or a knowledge of tax. Penalties can really eat into that saving you mention if you don’t do this correctly.
Yes, this is true. I recommend any small business owner seek professional advice, (and this is a good example where a competent tax advisor or accountant would be able to assist).
So have you paid £25k for it or are you deducting all your future savings and benefits off the purchase price of £50k?? If it's the latter, then with my car, that I purchased as a personal private car not through any business, for £47k, I should be able to use this logic to say every month that I spend £60 LESS in fuel and £15 less in tax, I can now take off the cost of the car? But no, because I've still paid £47k for the car, and you've still paid £50k for yours.
Hi Dan, thanks for your comment. No, the deductions are almost immediate - no funny logic games. Tesla of course want their £50k. The VAT can be reclaimed that quarter. £5k (10%) or £10k (20%). The £9,500 comes straight off the corporation tax bill some point up to twelve months from the date of purchase. So, it’s true you have to pay the full amount of day one, but within one year you’ll have the ‘cash - back’. Thank you again for taking the time to watch my video and for your question. I hope this helps!
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Not sure if its different where you are buy in the UK if buying outright and have personal use on a company car then you can’t claim any VAT back so not 10%, only in the case of if its leased
The VAT on £50k is £8333.33 not £5k, if you aren’t eligible to claim the VAT back on the car then the total cost is still the full price of £50k which can be dedicated against the corporation tax for that year so 9.5k in this example.
That’s not half price is it though…
Hi Lesley, thanks for your comment! It is about half price give or take a little each way. Your mileage may vary a tad depending on your personal and business circumstances. But yes, it’s a considerable saving on a new electric vehicle, and this works with any zero emission car - not just Tesla.
@@DivingDeveloper I’m a chartered tax advisor so let’s just leave it there 😋
Thank you for your reply! No tax cleverness is needed - as I touched on in my video - the 0% BIK (now 1% in the UK) is intended to drive the adoption of zero emission vehicles as company cars. I’m happy to chat further, either in the comments or offline (my contact details are in my channel). Thanks again for taking the time to watch my video - it is appreciated! :)
@@DivingDeveloper you say there is “not tax cleverness” needed but the there is a lot of paperwork involved here and it would be complicated for someone without an accountant or tax advisor to assist or a knowledge of tax. Penalties can really eat into that saving you mention if you don’t do this correctly.
Yes, this is true. I recommend any small business owner seek professional advice, (and this is a good example where a competent tax advisor or accountant would be able to assist).
So have you paid £25k for it or are you deducting all your future savings and benefits off the purchase price of £50k?? If it's the latter, then with my car, that I purchased as a personal private car not through any business, for £47k, I should be able to use this logic to say every month that I spend £60 LESS in fuel and £15 less in tax, I can now take off the cost of the car? But no, because I've still paid £47k for the car, and you've still paid £50k for yours.
Hi Dan, thanks for your comment. No, the deductions are almost immediate - no funny logic games. Tesla of course want their £50k. The VAT can be reclaimed that quarter. £5k (10%) or £10k (20%). The £9,500 comes straight off the corporation tax bill some point up to twelve months from the date of purchase.
So, it’s true you have to pay the full amount of day one, but within one year you’ll have the ‘cash - back’.
Thank you again for taking the time to watch my video and for your question. I hope this helps!