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So I've been looking into finance for my Model S, however, I think there are significant advantages to sourcing the money elsewhere.

Here's my thinking, assuming the purchase of a fully specced P85+ of £85k + VAT
  • Until March 2015, there is a 100% FYA on the purchase. (HMRC Details) This means that my company could make up to £100k profit, TAX free this year. In real terms for me, it would be more like a saving of about £8,000 which was my 2012/2013 tax bill, and my 2014/15 year is looking similar.
  • Claiming the VAT back. I'm currently not VAT registered, but if I do get registered before the purchase, then I can claim £17,000 back in VAT after the first quarter.
So in cashflow terms for my business, this is an extra £25,000 in my bank at the end of the year. The quote from the finance company at 4.8% interest on a 5 year deal has come back at a little bit over £1700 per month - so the first years payments are easily covered by the TAX benefits!

I'm not an accountant, so can someone tell me if I have totally misunderstood something and got this all wrong?
 

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  • Claiming the VAT back. I'm currently not VAT registered, but if I do get registered before the purchase, then I can claim £17,000 back in VAT after the first quarter.
HMRC website - "When you buy a car you generally can't reclaim the VAT"

I would strongly recommend you talk to your accountant... this is a complex area and with the recent changes announced in the budget you may end up paying a lot to get the vehicle out of the company.
 

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Kevin is spot on.
To get the vat back the vehicle must be a vat qualifying vehicle. Best check that out! Then as it is an expensive one you would be wise to check the benefit in kind rules, could be to HMRC, a luxury model.
Finally to make £100k profit in a year you would have to be vat registered already. Reg limit is turnover £85k or more.
A lot of people might be interested in a business that makes £100k profit!
Sorry to deflate your balloon
 

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Kevin is spot on.
To get the vat back the vehicle must be a vat qualifying vehicle. Best check that out! Then as it is an expensive one you would be wise to check the benefit in kind rules, could be to HMRC, a luxury model.
Finally to make £100k profit in a year you would have to be vat registered already. Reg limit is turnover £85k or more.
A lot of people might be interested in a business that makes £100k profit!
Sorry to deflate your balloon
Your 3years too late ;)
 
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