nowtta60
Well-known member
Hi all,
Been for a test drive today after monhs of pouring over stats, and uming and ahing over costs and options. The test drive has convinced me this is going to be my next purchase. I'm going in tomorrow to put down a deposit and talk to the finance guys.
I work as a freelance IT contractor and have the option to buy the car - or lease through my own 1 man company.
I wondered if anyone else has done this route. Normally my accountant tells me to buy a car private and claim the 45p a mile.
However there are several things which weigh in favour of buying an EV like th i3...
1) If it made it to the finance bill they were going to extend the first year enhanced capital allowance until 2015. If my understand this correctly it means instead of making company profit .. i can buy the car as an asset and the corporation tax part can be written off in 1 year as opposed to the usual 4 years. Effectively on a £30k car that's getting an extra £6,000 that would have gone to HMRC but instead goes towards the car purchase.
2) The low Bik rate means I'll pay about £633 over the next 3 years rather than say £2,000 on a 2.0 diesel
3) I can still claim 14p a mile for fuel when using a company car on company business (despite the fact on E7 it's less than 2p a mile).
4) Purchasing thru the business rather than personally means I can take less in divindends, and avoid getting into the 40% tax rate. This effectively saves me another 20% off the cost.
The downside - is that buying means I become the owner - and have to worry about depreciation. So am trying to find out if the first year write off scheme covers leasing. Info is a bit sketchy. I'm on flat rate VAT and switching to caswh accounting wouldn't be worth it just to claim back half the VAT on the elase payments.
Been for a test drive today after monhs of pouring over stats, and uming and ahing over costs and options. The test drive has convinced me this is going to be my next purchase. I'm going in tomorrow to put down a deposit and talk to the finance guys.
I work as a freelance IT contractor and have the option to buy the car - or lease through my own 1 man company.
I wondered if anyone else has done this route. Normally my accountant tells me to buy a car private and claim the 45p a mile.
However there are several things which weigh in favour of buying an EV like th i3...
1) If it made it to the finance bill they were going to extend the first year enhanced capital allowance until 2015. If my understand this correctly it means instead of making company profit .. i can buy the car as an asset and the corporation tax part can be written off in 1 year as opposed to the usual 4 years. Effectively on a £30k car that's getting an extra £6,000 that would have gone to HMRC but instead goes towards the car purchase.
2) The low Bik rate means I'll pay about £633 over the next 3 years rather than say £2,000 on a 2.0 diesel
3) I can still claim 14p a mile for fuel when using a company car on company business (despite the fact on E7 it's less than 2p a mile).
4) Purchasing thru the business rather than personally means I can take less in divindends, and avoid getting into the 40% tax rate. This effectively saves me another 20% off the cost.
The downside - is that buying means I become the owner - and have to worry about depreciation. So am trying to find out if the first year write off scheme covers leasing. Info is a bit sketchy. I'm on flat rate VAT and switching to caswh accounting wouldn't be worth it just to claim back half the VAT on the elase payments.