Electric company car?

Sandtree

Thinking of getting a car again after a few years without one due to living in central London and my latest client means I will be moving around the UK more than my previous. Work via my own vat registered Ltd (have done for years) and so it seems the best route is to get a lease EV as a company car...

BIK = personal tax rate against 2% of the list price
VAT = recoverable on a lease
Lease payments = fully expensible 

Just want to double check that the above is broadly correct and there is no split between personal use and business use for the vat or lease payments 

Grumpy_chap

I believe you are correct and it is a "no-brainer" as it were.

If you buy rather than lease, you can offset the full purchase cost against corporation tax in the first year but I understand VAT is not then recoverable.

Pennywise

VAT = recoverable on a lease

Only 50% input VAT recoverable on lease payments.

silvercar

Just be aware that order times on many electric cars is many months.

Sandtree

silvercar said:

Just be aware that order times on many electric cars is many months.

Yes, have seen that already but there are a small number of pre-built options and will be the usual Q of paying more for a custom build and a wait or getting something quicker, and cheaper, but may not be the preferred colour etc. 

Yet to agree with the Mrs on which vehicle yet... most electrics are a little dull at the moment.

AndrewB22

Pennywise said:

VAT = recoverable on a lease

Only 50% input VAT recoverable on lease payments.

My understanding is that there is a pending tax case about whether 50% or 100% VAT is recoverable. 

As someone else said, it’s a no-brainer. 

tasticz

i wish my company did fully electric cars as i'd love it do have as a second run around!