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You said 'not quite', suggesting what I'd posted is wrong. It isn't and section 7 adds no relevance to my point.

Initially you just posted a link to an 11 page document without explanation. I'll reiterate, when someone asks for advice, it's good to be precise and answer the question directly.

At least that's what my 25 years as a chartered accountant has taught me :)
 

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You said 'not quite', suggesting what I'd posted is wrong. It isn't and section 7 adds no relevance to my point.

Initially you just posted a link to an 11 page document without explanation. I'll reiterate, when someone asks for advice, it's good to be precise and answer the question directly.

At least that's what my 25 years as a chartered accountant has taught me :)
Sorry, you mentioned that legislation hadn't been updated. Rather it has and HMRC have ruled on the matter. :)
 

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I was just making the point that electricity is a fuel, but HMRC still suggest it isn't. Long may it continue :cool:

Interestingly it reminded me that I was going to check into what counts as a 'workplace charging point.' Could HMRC have any comeback if you were charging your vehicle from an extension lead (H&S issues aside)?

“237A Vehicle-battery charging (1) No liability to income tax arises in respect of the provision, at or near an employee’s workplace, of facilities for charging a battery of a vehicle used by the employee (including a vehicle used by the employee as a passenger). (2) Subsection (1) applies only if the facilities are made available generally to the employer’s employees at that workplace. (3) In this section— “facilities”— (a) includes electricity, but (b) does not include workplace parking, “taxable”, in relation to a car or van, has the meaning given by section 239(6), “vehicle” means a vehicle— (a) to which Chapter 2 applies (see section 235), and (b) which is neither a taxable car nor a taxable van, and “workplace parking” has the meaning given by section 237(3).”

As usual, HMRC's attention to detail is pretty poor, so at the moment the legislation appears to allow any charging means.
 

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As usual, HMRC's attention to detail is pretty poor, so at the moment the legislation appears to allow any charging means.
Yes, I think that's fair. They're really only concerned by who's paying for the 'benefit', as opposed to the means.

Interestingly I see that any 'charging infrastructure' is also eligible for 100% capital write down in year.
 

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Hi Guys

just to you know as may be of interest
I have spoken today with our chartered accountants (who also specialises in personal tax) and HMRC

there is absolutely no reason why I (or you) can’t have multiple company cars and if they are electric both would come with the massive perks on offer in April 2020

so today I have confirmed the order of both vehicles (one I have chosen to get April 6th so would be 0%BIK, and the second car is on a long lead time due to build slots so prob sept-Dec 2020
So would have one electric car and then a second 6m later

loosely here are the savings (I know the figures may be slightly out but a guide)

example for a lease

Electric car costing £1000pm inc vat
-19% (corporation tax)
-10% vat (can claim 50% of vat)
-13.8% (employers NI)
-42% (income tax assuming higher payer)

= £471pm nett cost to me per month in 2020/21

if you are a lower tax earner or offset a divided the saving would be different

I’m told if you reduce your salary for a company car this could be classed as salary sacrifice and liable for BIK

2021/22 would be a bit more as 1% BIK and company would pay some NI
2022/23 would be 2%


it’s a massive perk for me as I currently lease another car that Im paying for out of my nett income so could get a far better car for the same real cost

hope this is of help to someone else

Dan
Thanks for posting this as it is something I have been wondering. Are you a single director ltd company? And are you going to employ your wife or not? I think I read that it is okay to insure non-employees on company cars.
 

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Discussion Starter #26
Thanks for posting this as it is something I have been wondering. Are you a single director ltd company? And are you going to employ your wife or not? I think I read that it is okay to insure non-employees on company cars.

Hi mate
I’m a co-director but my business partner is a dinosaur (will only drive a V8 or V12)

I am not going to employ my wife as its not required for me to have multiple cars but would happily do so if it was required

Something to note as advised by my accountant if you employ a family member then you need to make sure they are paid minimum wage, so you can’t pay your wife 10k pa and have her as a full time employee
My wife works 4 days a week so I would have employed her part time (one day a week) and paid her a day rate for admin and she also gets a company car

to be fair to her she does do some admin for me so should prob pay her

I was advised not to employ someone and just give them a car HMRC wouldn’t like it were they to perform an audit

I’m by no means an expert on this matter but have a bit of an understanding
 

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How long before this tax loop hole is closed..........
It was around before. Around 2012 my previous company purchased a Tesla Roadster on a similar type of tax law.

The current rule will help build a bigger used EV market for everyone else.
 
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