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Electric Vehicles 0% Benefit In Kind 2020

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    Electric Vehicles 0% Benefit In Kind 2020

    Done a little search and not seen much coverage on this. Reasonably neutral source:

    Tax Benefits - GUL

    So in theory with capital allowance and BIK relief you can buy yourself a nice EV? Does it have to be purely for business purposes?

    #2
    ev site:contractoruk.com/forums - Google Search
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by kissmyaIR35se View Post
      Done a little search and not seen much coverage on this. Reasonably neutral source:

      Tax Benefits - GUL

      So in theory with capital allowance and BIK relief you can buy yourself a nice EV? Does it have to be purely for business purposes?
      Yes, you could but remember:

      EV cost a premium over their ICE equivalent.

      An EV may suit your mileage right now but what about the next contract that needs an overnight stay?

      Current EV charging infrastructure is growing but you will find fewer places have super fast charging stations.
      I couldn't give two fornicators! Yes, really!

      Comment


        #4
        Originally posted by BolshieBastard View Post
        Yes, you could but remember:

        EV cost a premium over their ICE equivalent.

        An EV may suit your mileage right now but what about the next contract that needs an overnight stay?

        Current EV charging infrastructure is growing but you will find fewer places have super fast charging stations.
        Or if you have to go inside and need to close the company.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          This is what stopped me in my tracks ordering a tesla as I may not be trading via Ltd in future so holding off for now
          Originally posted by northernladuk View Post
          Or if you have to go inside and need to close the company.

          Comment


            #6
            It gets more appealing when you have retained funds, ER is going away so the appeal to increasing those funds is diminished, and you'd have to pay 32.5% dividend tax to extract the money.

            Comment


              #7
              Originally posted by northernladuk View Post
              Or if you have to go inside and need to close the company.
              Hypothetically, in this case, could you not extract an EV "tax-free" before MVL?

              Comment


                #8
                Originally posted by kissmyaIR35se View Post
                Hypothetically, in this case, could you not extract an EV "tax-free" before MVL?
                Dunno.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by kissmyaIR35se View Post
                  Hypothetically, in this case, could you not extract an EV "tax-free" before MVL?
                  Unlikely as most MVL specialists will expect everything to have been sold at market value prior to starting the process so the companies assets is just cash in bank accounts.

                  On the other hand at least I now know which poster you previously were.
                  merely at clientco for the entertainment

                  Comment


                    #10
                    Originally posted by nobody123 View Post
                    This is what stopped me in my tracks ordering a tesla as I may not be trading via Ltd in future so holding off for now
                    What should have stopped you in your tracks over buying a Tesla are the absolute horror stories of owners in the US when the vehicle gets to about 3 years old. And no, it's nothing to do with the batteries either.
                    I couldn't give two fornicators! Yes, really!

                    Comment

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