Speak EV - Electric Car Forums banner

1 - 7 of 7 Posts

·
Registered
Joined
·
221 Posts
Discussion Starter #1
I am trying to build a business case for our fleet manager to consider some electric vehicles in our fleet. I already have daily usage data to show a significant proportion of our fleet travel less than 80 miles per day and I am hoping to validate this against a telematics pilot that we have already been running. So I have the usage profiles sorted.

But I am struggling to get clarity on the accounting benefits, in particular what are the impacts of the 100% First Year Allowance and has it been extended to 2015 for electric vehicles. Is there a financial limit that would exclude the model s or i3?

Thanks to anyone who can help with this.

Richard
 

·
Registered
Joined
·
206 Posts
As far as I am aware there is no limit.

At our work there has been discussions on getting a model s as a company car for one of the directors mainly due to the 100% write down.
 
  • Like
Reactions: Lee Dalton

·
Registered
Joined
·
3,308 Posts
I am trying to build a business case for our fleet manager to consider some electric vehicles in our fleet. I already have daily usage data to show a significant proportion of our fleet travel less than 80 miles per day and I am hoping to validate this against a telematics pilot that we have already been running. So I have the usage profiles sorted.

But I am struggling to get clarity on the accounting benefits, in particular what are the impacts of the 100% First Year Allowance and has it been extended to 2015 for electric vehicles. Is there a financial limit that would exclude the model s or i3?

Thanks to anyone who can help with this.

Richard
Don't forget the company pays employers NI on any benefit in kind, so if they are company cars, there is a saving in that too :)
 

·
Registered
Joined
·
2,623 Posts
No limit, but when the vehicle is sold later, the income from the sale is considered as 100% profit and taxed accordingly.

Keep the car long enough and depreciation will make this profit negligible.
 

·
Registered
Joined
·
221 Posts
Discussion Starter #5
Thanks for the responses, does this still apply if the company's tax location is Switzerland or since profits are probably declared overseas would the 100% be irrelevant.

Thanks again
 

·
Registered
Joined
·
2,623 Posts
AFAIK the FYA only applies to companies who pay corp tax in the UK. Maybe the Swiss have a similar scheme? Best to check with your accountant...
 

·
Registered
Joined
·
206 Posts
I
AFAIK the FYA only applies to companies who pay corp tax in the UK. Maybe the Swiss have a similar scheme? Best to check with your accountant...
it would depend on the tax structure of the company.
If it's like amazon where no sales are made in the UK and all operations run at a loss it won't be possible.

But if it's like Starbucks where they sell things but make no profits due to chargers for "services" provided my the regional operations in another country you could make "enought" profit to be wiped out by an EV purchase
 
1 - 7 of 7 Posts
Top