Timing of Electric car purchase Timing of Electric car purchase
Page 1 of 3 123 LastLast
Posts 1 to 10 of 26
  1. #1

    Nervous Newbie


    Join Date
    Nov 2020
    Posts
    5

    Default 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. #2

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    26,969

    Default

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

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

  3. #3

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    44,973

    Default

    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!!!!

  4. #4

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    26,969

    Default

    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

  5. #5

    Prof Cunning @ Oxford Uni

    WTFH's Avatar
    Join Date
    Nov 2012
    Posts
    22,470

    Default

    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?
    I'm perfect, in a very specific and limited way.
    Hands... out infractions
    Face... the music
    Space... between the ears

  6. #6

    More time posting than coding


    Join Date
    Nov 2018
    Location
    Warwickshire and Dublin
    Posts
    361

    Default

    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
    Main website | News and blog | Magazine

  7. #7

    Contractor Among Contractors

    wattaj's Avatar
    Join Date
    Aug 2006
    Posts
    1,207

    Default

    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.

    ---

  8. #8

    Contractor Among Contractors


    Join Date
    Jul 2019
    Posts
    1,746

    Default

    Quote Originally Posted by wattaj View Post
    Office = home?
    Quote 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.

  9. #9

    Godlike

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    5,768

    Default

    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

  10. #10

    Still gathering requirements...


    Join Date
    Feb 2017
    Posts
    22

    Default

    Quote 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.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •