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Discussion Starter · #1 ·
Here's an interesting conundrum, I'm thinking of buying Supercharging for my 60 and defining what it is makes a noticeable difference to the accountancy treatment, and by inference taxation treatment.

So is it:

1) A subscription to a Tesla provided service
2) A pre-payment for electricity
3) A feature of a particular vehicle
 

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Somebody's up early!

Well as it's not something you continue to pay for, I would say 1) is out of the running. You also wouldn't transfer it to a new registered keeper as a subscription.

Which leaves 2) and 3). If you go by Tesla's definition which is that your payment would enable a feature of the vehicle for you to use the supercharger network, and that you'll never be charged for electricity, I'd be swayed toward 3) personally.

While you could think of it in terms of 2) - as a pre-payment for electricity - that's not how it's marketed. In theory, you're not paying for £2,000 (or however much) worth of electricity anyway, because you can use as much as you like which means you can't put that money on a value of an amount of electricity.

I'd go with 3). You'd be paying to enable a feature.
 

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Discussion Starter · #3 ·
@Lightwave I think you are probably right, but it's an interesting dilemma.

My view is it's a mixture of 2/3, but the apportionment is tricky. Some of the value is definitely in the utility of the electricity, whereas some is in the convenience of faster charging times and ability to use CHAdeMO for the user.

There's also the case of the "installation" fee for late enablement, is this repairs and maintenance, or again added to the P11D value of the car :confused:

I guess a phone call to our auditors who will sign it off is required.;)

It's a bit moot at the moment, as I've never even seen a Supercharger in the flesh, and the CHAdeMO adapter isn't available, the latter being the thing that will get me to begrudgingly pay the fee :(
 

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There are plenty of subscription models where you pay a one time fee for lifetime membership. Given the number and features of superchargers are not fixed, you could say its a service, that is going to be improved over time.

However best to get the ok from an accountant :)
 

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Discussion Starter · #5 ·
There are plenty of subscription models where you pay a one time fee for lifetime membership. Given the number and features of superchargers are not fixed, you could say its a service, that is going to be improved over time.

However best to get the ok from an accountant :)
I agree, but then I would as it's in my interest to :D

@Lightwave 's point is the transferability of the subscription on asset disposal is probably the thing the accountant will baulk at :(
 

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Personally, I would go for option 3. Question - if you buy something for the vehicle after the initial purchase, should it go on the P11D? I was under the impression that it was invoice value only. Otherwise, if the company bought a 2nd set of alloys for winter tyres after the initial purchase, or a adapter, then they would also have to be added...
 

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Discussion Starter · #7 ·
Personally, I would go for option 3. Question - if you buy something for the vehicle after the initial purchase, should it go on the P11D? I was under the impression that it was invoice value only. Otherwise, if the company bought a 2nd set of alloys for winter tyres after the initial purchase, or a adapter, then they would also have to be added...
My interpretation was it was the other way round. If you buy accessories after the event strictly speaking they should increase the P11D value.

HMRC guidance http://www.hmrc.gov.uk/guidance/p11dguide.pdf states:

"any accessories added to the car after it
was first made available to the employee,
provided they were added after (31 July
1993) and had a price of £100 or more."

So yes a set of winter alloys, an
additional Type-2 cable, or CHAdeMO adapter, should be added to the P11D figure. :( (I have no doubt lots of this gets overlooked in practise though)

If I could pay it by monthly direct debit as a true subscription each one would be under the £100 threshold, and wouldn't increase my BIK exposure :D
 

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Aren't you talking peanuts? £2000 @ 5% = £100 /year

There's Income tax on that + 13.8% NI contribution (paid by the business)
 

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Discussion Starter · #11 ·
Aren't you talking peanuts? £2000 @ 5% = £100 /year

There's Income tax on that + 13.8% NI contribution (paid by the business)
You are correct it is small in the grand scheme of things, but it isn't limited to NI + BIK, there's also VAT and balance sheet implications. As an owner of a business these are also important as it effects how much profit I can withdraw.

Very roughly, I think it would end up being around £300 less in my pocket over two years.

Is it worth arguing with HMRC over this amount... probably not ;)



 

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Supercharging is an option when you specify your car at purchase, therefore I would treat it as a retro-fitted accessory. Just because it's already fitted but hobbled by Tesla is not material – the accountancy treatment should be that it's an additional feature installed after delivery.
 

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So the answer is to fully load with all possible options when you purchase. :)
Yes but the options you want ahead of delivery.

Some things they can't or won't retrofit. Auto-Pilot anyone?
 

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Discussion Starter · #16 ·
So the answer is to fully load with all possible options when you purchase. :)
Depends if money is no object ;)

It's great between now and April, but next year it's 5% BIK, then 7%, then 9% the difference between a base 60 to a fully loaded P85 is going to cost nearly £200 out of your take home a month just in tax as a company car in 2017/2018 :(

This will definitely erode a chunk of the appeal of a Tesla over a Merc, which like for like list price are much cheaper on contract hire deals, and you avoid all the BIK issues.

Depreciation on options is also higher (They only retain 43% of the value on the guaranteed finance schemes, this includes the upgrade from a 60 to an 85.) Sure if you have the budget, go for it and tick every box, but personally I'd struggle to justify £500+ for the privilege of having a carbon spoiler for 3 years ;)

I know to some this isn't a concern, but I had set a self imposed budget, which left a choice of a 60 with leather + tech + parking, or an 85 with nothing. I saw more utility in the former given my usage.

However at the time of ordering my car CHAdeMO adapters were just rumours. I had no way of knowing it was going to be £2.3k on top for SC enablement. Frankly I can't see me using a Supercharger, so paying HMRC anything as a BIK is galling!! :(

In hindsight, I'd go for an 85 now, this issue (not range) would have convinced me to up my budget / delete some options.
 
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