• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Timing of Electric car purchase

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Timing of Electric car purchase

    Hi everyone, first post so be nice. I have really looked at the other related entries and cannot find something specifically similar.

    I currently make a claim for motoring expenses and split between business and private use. Only 20% is business use - it changes each year between 15 and 25%.
    I understand that if I buy a new electric vehicle - lets say for 100k, then I could write down all the tax relief in the first year, but that would only be the business part - so 20%, i.e. 20k reduction.

    BUT
    What if I get the car delivered in March, leave it office car park and only use it for business work + the odd mile of personal use. Between car delivery and end of my accounting year/ financial year I would be using that car 95% for business.
    Then would I get 95% of the purchase price written down against tax in the first year?
    And then in the second year (after the residual value of the car has dropped to 0) I can start using the car normally i.e. 80% personal and 20% business.

    I totally understand on selling the car I will need to pay tax on the sale price.

    Am I right that this is how it would work? Or is this idea totally wrong and illegal?

    For full clarity I have already run it through my accountant - but she will not get back to me for a fortnight - they are clearly behind with their more urgent work because of Covid. I just don't want to get too excited about a better car if I am completely barking up the wrong tree.

    Thank you in advance to everyone who takes the time to reply.

    Bonglim

    #2
    Ask your accountant because to me it's complete rubbish..

    And have you heard of a device called a telephone..
    Last edited by eek; 10 November 2020, 08:19.
    merely at clientco for the entertainment

    Comment


      #3
      You pay your accountant for a service. Two weeks delay isn't acceptable. Lean on them harder or move. Asking a bunch of contractors because your accountant isn't available doesn't really work.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Nearly completely off topic here but following this thread I've just gone on to Telsa's website and there are a few bargains seemingly to have..

        https://www.tesla.com/en_GB/inventor...h&zip=&range=0

        £37,230 from stock or £47,990 if your order one.
        merely at clientco for the entertainment

        Comment


          #5
          Out of interest, how will you get to the car? Will you drive a separate one to the office car park to pick up the company car when you need it? Will you claim mileage on the 2nd car?
          …Maybe we ain’t that young anymore

          Comment


            #6
            I looked at something similar with electric cars owing to some stupidly good discounts I can get on particular cars.
            This stuff is fraught with danger and for me was definitely not worth the hassle.
            Former IPSE member
            My Website

            Comment


              #7
              Office = home?

              You're trying to claim the maximum offset by fiddling around the edges of the tax laws. And you're not even being clever about it. JFRO.

              ---

              Former member of IPSE.


              ---
              Many a mickle makes a muckle.

              ---

              Comment


                #8
                Originally posted by wattaj View Post
                Office = home?
                Originally posted by WTFH View Post
                Out of interest, how will you get to the car? Will you drive a separate one to the office car park to pick up the company car when you need it? Will you claim mileage on the 2nd car?
                Walk out of the front door.

                Comment


                  #9
                  The best time to get a company car was 1992.... Before they were taxed to death.
                  Spending £100k on a toy, today is sheer madness. Let's put aside the recession for now. Home working is on the rise. If you need a vehicle short term, rent it. If you need a vehicle for a 3/6 month project, buy/drive a personally owned banger (5 year old Mondeo for example) and make money on 45p per mile.

                  If you've got £100k in the bank then that's your warchest.
                  If you need to borrow the money then you need to re-align your priorities.

                  HTH
                  See You Next Tuesday

                  Comment


                    #10
                    Originally posted by eek View Post
                    Nearly completely off topic here but following this thread I've just gone on to Telsa's website and there are a few bargains seemingly to have..

                    https://www.tesla.com/en_GB/inventor...h&zip=&range=0

                    £37,230 from stock or £47,990 if your order one.
                    That was a pricing error by Tesla (data entry admin?) back to normal now.

                    Comment

                    Working...
                    X