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Hyundai Kona convert...
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Hi - I've not made my purchase yet - still weighing things up....

I run my own small scale consultancy - and things have been going pretty well recently, and I have work scheduled for the next 3 months or so which give me the confidence to 'take the plunge'. Leasing is not for me, especially since Ampera seems to have been given a low Residual Value which pushes up the monthly payments to BMW levels... It''s definitely an Ampera I want, so it's 'get out the cheque book, take a deep breath and sign up', but before that....do I buy privately or through my company?

Private Purchase: Currently there's an Ownership package available - £2K of 'fuel' plus 3 yrs servicing and the balance of the UK Govt grant to put in a home charging station :D

Company Purchase: 100% write down in year one (ie reduces the profits of the company and reduces my Corporation tax) and I can charge £0.15 per mile for the 10000 business miles I anticipate doing per year. But against that, I incure Co.Car tax based (5% of P11D value for 2014-15 and rising after that?) and will have 13.8% of that amount as NI to pay too. And I'll have to have the car registered in my company's name and arrange Corporate insurance (and I haven't a clue how to do that).

So it's either Ampera or nothing when it comes to EVs, but if you have any thoughts / issues that I've missed or can help sway the argument one way or another, I'd be very pleased to hear from you.

Thanks - Tim :)
 

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Hi Tim. My Ampera has proved very practical and great fun to drive, but the economy is only at its best if you can drive the majority of the time on electric. That means no more than a 50 mile comute (or 50 miles each way if you can charge again at work). The rest of the time it returns about 50 mpg.
Sad to say that although mine had been utterly reliable until May this year, it has now let me down twice within a month. The first time it dumped all the coolant, due to a heat-exchanger leak and the second time with a brake system fault. Regards, Ralph
 

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Just to clarify, the government grant means you can install a home charging station for free (subject to wiring) whether or not you buy an electric car.

P.S. The Volt is nice too.
 

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Tim,

I have had a Volt as my company car since October 2012 and it has reduced my tax bill considerably, I recon it costs me about a third of what I was paying in tax for the BMW520 I had previously!

Also (being in Finance) I would suggest that the 5% tax (+NI) will be considerably lower than the income tax you would pay on the £35k the company would need to pay yourself to buy the car. But I guess you have an accountant to do your books and I'm sure that they would be able to advise you on the most tax effective ownership structure.

I'm really pleased with my Volt. It is a comfortable car and quite nippy if you don't watch the economy guages.
My company were quite slow at realising the advantages to them (around £2,000 per year in fuel savings) so they are only just now getting around to installing a charger at the office and have recently agreed to pay for the electricity I would use to charge at home, so I have been running mostly on petrol up to now and this does return something close to 50mpg. My commute is about 25miles so even in the winter (when battery range is reduced) I should be able to do most of my driving on battery alone once the chargers are in place.

BTW - all the charger companies are offering (government supported) free home charger supply and installation.

Regards,
Andy
 

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My dealer invoiced the car to my company (who is the legal owner) but the registered keeper on the V5 is me. That way I was able to insure the car on a personal insurance policy. Not all insurers will insure cars owned by a company, but some will and much cheaper than fleet insurance.

I reduced my corporation tax bill substantially last year through buying the ampera. The BIK tax liability and class 1A NI is low and will not increase as much in the next few years as HMRC originally planned.

I may buy the car from the company after 4 or 5 years but it depends if Vauxhall will turn a blinds eye regarding warranty. Of course the V5 will still be the same keeper ;-)
 

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Hyundai Kona convert...
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Discussion Starter #6
Hi Proddick. I think the Vauxhall lifetime warranty is related to V5 (registered keeper) not who is invoiced, so you should be fine there. Interested in your insurance. Could you give details? Many thanks
 

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@alc - I insured with esure who were fine with it being a company owned car provided my name was on the V5. I guess it isn't really any different from a car on PCP where the lease company is the actual owner?
 

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Hi I'm self employed with a Ltd VAT reg Company and spent a lot of time with my accountant doing the Maths. An Ampera is 100% tax deductable so if your company buys it you save 20% corporation tax which could be about £6k on the purchase price. BUT at that point you can't claim your normal 45ppm off the tax man to run the car. In my case that means loosing about £7.5k per year so even over 1 year thats a big hit and over 3 years it didn't make any sense. It was far easier for me to buy it myself. I save £350 per month on Diesel which offsets the finance and I claim about £300-£350 per month in mileage allowance.
 

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I'm in the same boat as GMG31 with my own VAT registered Ltd company and with my accountant came to the same conclusion after all things considered........ The 45ppm that I invoice to my client (+20% vat) when I travel is the real bonus with a charge that's around 40 miles for free to you that u can claim........ Everyone's situation is different however so I would just say run it by your accountant.........

I ended up getting a small amount of HP on mine after ruling out PCP........... I would rather not be limited on the mileage and get the benefits of using it as much as possible.

Good luck....
 

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When I decided on the Ampera I planned to take the train for longer business journeys to help my carbon footprint and so that the 100K warranty would last a while!

This meant that the tax free income (45p x business miles) I could get from my company would have been quite low. Also, in the financial year I bought the car I needed capital allowances so the 100% WDA worked well for me. Of course my company also pays the insurance, servicing and the expensive new tyre I needed after a puncture.

As I explained in my earlier post, my plan is to buy the car from the company after 4 years and run as a private car. This way the company takes the early depreciation.

As others have said, everyone's circumstances will be different.
 
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