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Where Taxpayers and Advisers Meet

Electric company car with private use

mrrafs
Posts: 2
Joined: Sat Mar 23, 2019 5:12 pm

Electric company car with private use

Postby mrrafs » Sat Mar 23, 2019 5:14 pm

Hello,

Our family car has just died. It was however used mostly by my wife who used it for valid business trips to clients several times a week. I am still trying to make head or tail of the tax implications of an electric replacement company car.

She is a joint director of our non-vat lmt company and a paye employee of it. I am also a director. We are both basic rate tax payers.

Savings of an electric car?

VED/Road tax exempt

BIK 2%of p11D (2020/21) list price (rather than 20%) = approx £100 per year

Capital Allownce is 100% 1st year allowance if bought new for the company. So the cost of the car is treated as a taxable expense? Is this right, even if the car is also used privately?
Or if it’s second hand, 18% single asset pool. So i assume that is that you can claim 18% of the cost in the first year, and 18% of the pool after that.

Battery hire can also be a company expense, as well as a portion of the electricity used to charge the batteries..

I must be reading this wrong? If the company buys a new £20k electric car, it’s total value is treated as taxable expense, and the cost for private use to the employee will be BIK and electricity/fuel used?

really?

D&C
Posts: 61
Joined: Thu Dec 22, 2016 10:04 pm

Re: Electric company car with private use

Postby D&C » Sat Mar 23, 2019 7:06 pm

As your family has "just died" what are you doing about the 2019:20 tax year due to start in a couple of weeks?

Waiting until 2020:21 seems a long gap.

mrrafs
Posts: 2
Joined: Sat Mar 23, 2019 5:12 pm

Re: Electric company car with private use

Postby mrrafs » Sat Mar 23, 2019 7:29 pm

buy now.. and pay BIK 16% for one year..


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