Best way to reduce tax on buying a company car?

Poshsalt

My car has packed in.

I own a limited company.

 

I've heard if you buy a pickup that 100% can go against a company business and electric vehicles.

 

When I've done research, it says electric cars get 100% return of money only if its new.

 

Can you recoop 100% of an electric car’s costs?

Could I finance an electric car say tesla over 5 years and get that 100% off company costs per year?

Would you say a pick up or an electric car is better?

Is a pick up 100% off your tax bill?

 

Thanks

Savvy_Sue

Talk to your accountant. 

martindow

Might be worth looking on thr motoring board.  I find it can be helpful doing a bit of investigation and research before visiting people like accountants or solicitors to create a list of questions to ask.  The appointment can go very quickly unless your questions are well focussed.

Alice_Holt

Or post on the Tax cutting board

Grumpy_chap

Poshsalt said:

My car has packed in.

I own a limited company.

 

I've heard if you buy a pickup that 100% can go against a company business and electric vehicles.

 

When I've done research, it says electric cars get 100% return of money only if its new.

 

Can you recoop 100% of an electric car’s costs?

Could I finance an electric car say tesla over 5 years and get that 100% off company costs per year?

Would you say a pick up or an electric car is better?

Is a pick up 100% off your tax bill?

 

Thanks

No-one can say whether an EV or a pick up is better - it all depends on your needs and whether use pattern suits EV, e.g. can you install home charger?

EV is 100% 1st year write down and very low BIK.  

Pick-Up is flat rate BIK (for vans) - I think it is around £3.5k and fuel card BIK is <£1k (but check latest figures with your Accountant).

You probably cannot reclaim VAT on either option, given the private use of the vehicles.  This can be a complicated / detailed subject, so ask your Accountant.

Remember, a pick-up will cost a lot to run as they are not that fuel efficient so won't be anywhere near the mpg that most cars achieve.  EV, on the other hand, will be much cheaper to run but like-for-like higher purchase cost than an equivalent ICE car.  EV's such as the MG5 will be competitive to purchase versus a pick-up.

As I understand it, how you finance the car is irrelevant to the tax write down.  If you take an EV with 100% first-year write down, you cannot write-down the same capital again in future years.

Reading between the lines, you sound like you are looking for someone to verify that your preference of a TM3 is a sensible choice compared to a Ford Ranger.  I suspect, if you speak with your Accountant, the answer will please you

The main theme, though, is speak with your Accountant.  Good luck and I hope you enjoy driving the new vehicle.