How to get an Electric Car

[rogerfederer]

Hi - I am sole Director and employee of Ltd company [ not vat registered]. I want to get a new [fully ] electric vehicle from April 2020.

I understand that Bik is 0% / 1% / 3% over next 3 years.

1. My company can lease a car and make it available to me, Bik is as above and there is new [beneficial] rules regarding how this affects company profits as it is an EV. As an employee I can claim 4p a mile for charging

2. There is also the salary sacrifice option :

2.1 - Does SS only apply to leasing a car - can it also apply to a car loan ? and if so – how does this work ?

2.2 - If SS is for lease only - can I set up a SS scheme for this single employee [ me] and how? Do I have to go through specialised SS car lease company?

2.3 For the car that I get through SS - when I use it for work can I claim 45p / mile ? [I do approx 600 miles a month for work ]

Which is the best option - have I missed something?

Thoughts?

Thoughts? Don't buy one yet.

If you can't afford it with your own savings, don't buy it. We are on the cusp of a change in the contractor world and also major change in the world of transport. There are simply not many electric options available right now.

If you absolutely must get one - which I applaud - then buy a second hand option. If you don't need range then a Nissan Leaf or similar. It's really quite a spacious car. If you have money and want the range ten a Tesla model S is the one. BMW i3 facelift of a few years ago has mixed reviews.

A car is the easiest thing to spend money on and is guaranteed to depreciate, so consider the IR35 effects and price before committing. Personally I wouldn't buy a new fossil fuel car and never have, so I don't see the advantage of buying a new electric car.

Do not buy a hybrid. They are a con to allow companies, such as Volkswagen Auto Group (VAG: VW, Audi, Porsche, Seat) to meet emissions targets and yet the very short distance capable on battery encourages you not to charge them due to the effort involved for 10 to 15Km of driving on electric.

[hairymouse]

Lots of hybrid cars getting their catalytic converters stolen. Might be worth a Google to be sure to avoid those models.

[ladymuck]

Lots of hybrid cars getting their catalytic converters stolen. Might be worth a Google to be sure to avoid those models.

Is cat theft still a thing or do hybrids have a different type of cat converter that you don't have on normal cars that makes them desirable?

[sybadm]

Thoughts? Don't buy one yet.

If you can't afford it with your own savings, don't buy it. We are on the cusp of a change in the contractor world and also major change in the world of transport. There are simply not many electric options available right now.

If you absolutely must get one - which I applaud - then buy a second hand option. If you don't need range then a Nissan Leaf or similar. It's really quite a spacious car. If you have money and want the range ten a Tesla model S is the one. BMW i3 facelift of a few years ago has mixed reviews.

A car is the easiest thing to spend money on and is guaranteed to depreciate, so consider the IR35 effects and price before committing. Personally I wouldn't buy a new fossil fuel car and never have, so I don't see the advantage of buying a new electric car.

Do not buy a hybrid. They are a con to allow companies, such as Volkswagen Auto Group (VAG: VW, Audi, Porsche, Seat) to meet emissions targets and yet the very short distance capable on battery encourages you not to charge them due to the effort involved for 10 to 15Km of driving on electric.

Do you know if one can buy Second hand/Used Electric Car on Company and still avail same BiK benefits?

[hairymouse]

Is cat theft still a thing or do hybrids have a different type of cat converter that you don't have on normal cars that makes them desirable?

Not sure, but I see on my neighborhood forum that people are getting theirs stolen all the time, sometimes multiple times from the same car. If I had to guess, I'd say that certain models of Prius must be really ripe for the picking.

[abcdef4]

If you don't have an accountant, do not do this.

It is feasible to DIY stuff if you keep things simple, don't do out of the ordinary. Where it's almost guaranteed to go wrong is when people do more complex stuff, relying on snippets they read on the internet.

I have an accountant but they are struggling to answer these questions

[abcdef4]

Thoughts? Don't buy one yet.

If you can't afford it with your own savings, don't buy it. We are on the cusp of a change in the contractor world and also major change in the world of transport. There are simply not many electric options available right now.

If you absolutely must get one - which I applaud - then buy a second hand option. If you don't need range then a Nissan Leaf or similar. It's really quite a spacious car. If you have money and want the range ten a Tesla model S is the one. BMW i3 facelift of a few years ago has mixed reviews.

A car is the easiest thing to spend money on and is guaranteed to depreciate, so consider the IR35 effects and price before committing. Personally I wouldn't buy a new fossil fuel car and never have, so I don't see the advantage of buying a new electric car.

Do not buy a hybrid. They are a con to allow companies, such as Volkswagen Auto Group (VAG: VW, Audi, Porsche, Seat) to meet emissions targets and yet the very short distance capable on battery encourages you not to charge them due to the effort involved for 10 to 15Km of driving on electric.

Hi - we are EV converts - we have a 2nd hand nissan leaf as the family 2nd car and we are never going back. I am 100% out of ir35 and drive approx 600 miles a month that are genuine business miles. I drive a diesel suv and want to get rid of it. Buying a new EV [ likely to be a kia e-niro ] is going to be a very good decision.

The options are:
1. take out a personal loan and buy the car myself - and I can claim 600 x 45p a mile a month [ and considering an EV costs about 1p a mile to run this is a good thing]

2. take out a company loan or lease and use the car as a company car - no Bik in year 1 and 1%/2%in y2 and y3 - so this is beneficial. mileage is only claimed at 4p a mile though

3. use salary sacrifice - which I cannot work out how this will work - I have some calls next week with leasing companies to discuss. Is the car 'mine' - i.e can I claim 45p a mile for mileage [or is it the companies so 4p/mile] - makes a difference to the numbers.

cheers

[northernladuk]

I am 100% out of ir35

For now. If you can stay in an outside gig end end for the next two or three years I'd be willing to bet youll be in the tiny minority.

The advice has always been company cars aren't the best idea unless maybe EV. So yes you've picked an EV but now the landscape has changed considerably being able to find work becomes the biggest issue. We've had at least two posts in the last few weeks about people stuck with cars wanting to shut their business and from what I remember the way out of the leases means all the benefit of having it though the company disappeared.

Just food for thought even if the figures look worth it.

[abcdef4]

Lots of hybrid cars getting their catalytic converters stolen. Might be worth a Google to be sure to avoid those models.

no - fully electric - no hybrid nonsense

[abcdef4]

For now. If you can stay in an outside gig end end for the next two or three years I'd be willing to bet youll be in the tiny minority.

The advice has always been company cars aren't the best idea unless maybe EV. So yes you've picked an EV but now the landscape has changed considerably being able to find work becomes the biggest issue. We've had at least two posts in the last few weeks about people stuck with cars wanting to shut their business and from what I remember the way out of the leases means all the benefit of having it though the company disappeared.

Just food for thought even if the figures look worth it.

thanks for advice - the service I provide is 100% out of IR35 [and I'm having to turn work away!

The changes from April 2020 re fully EV cars are pressing reset on all the old advice re company cars tbh. BiK changes plus the ability to put 100% or cost of car against company revenue makes it a no brainer as far as I can see.

I am really stuck on how salary sacrifice works though!

cheers