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Discussion Starter · #1 ·
With the new corp tax rate, is it posible to effectivly buy an EV for free if you are earning enough.(50k pa)

Ubar driver running a LTD


Cost of car: £40,000
VAT (£50k * 20%): -£8,000 (claimable for ubar drivers)
Corporation tax deduction (£50k * 25%): -£10',000
Income tax saved: -£20,000
National insurance saved: -£7,200
Benefit in kind tax (£6,500 * 40%): 1000
[email protected] miles pa (5p a kw @ 4.5kwh/h) vs 11mpl =2141 saved by the company
Campany paying for fuel(4p/ mile) = £578 paid out tax free(effectively a saving off 42% on income tax)
Class 1A national insurance (£6,500 * 13.8%): £897

since th car is worth £0 I then give it away.
zero tax laibility

Yet the employee is liable for the BIK....whats that if you are GIVEN the car? cannot be 1-2%
being given a 40K car would almsot definatly push you into the 50K bracket.
Then you could sell the car

THIS JUST SEEMS MAD! here but this looks like you could rinse and repeat. as soon as you earn 40K taxable.

if you are "earning 50K" you would hit this number after 8 months

A model 3 would prob lose 5K in that time.

meaning you could make almost as much money selling your second hand teslas.

THIS WOULD PUT YOU INTO THE 50K bracket!


Please sa im wrong......
 

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First issue - please show me an Uber driver who's taking £50k gross as PAYE.

VAT - this needs to be the marginal rate, as you'd have to pay back the remaining VAT on a sale.

Corporation Tax - again, you need to calculate the marginal rate as the proceeds of the sale of the car will be classed as income.

Income Tax - not sure how running a company car affects this.

Same with NI. Please explain.

BiK is calculated on the P11D value, not an estimate of what it's worth.

I'd recommend you get a better accountant. I don't really understand much of what you've proposed.
 

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If only it was that easy.....

The only thing I'd add is that you are effectively getting a car for free, as the Ltd company owns it rather than the individual, but the individual pays 0% BIK tax presently and a meagre 1% from April.

You'd have to work 24/7 to make profits of £50k/yr as an Uber driver, so it's really a moot point.
 
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