Britishshooting
Club Champion
Sorry trying not to make it longwinded but at the same time give background and fully understand my situation.
I’ve previously utilised salary sacrifice to purchase an EV, the lease is about to come to an end which co-incides with my annual review. I work for a limited company, nobody else on salary sacrifice. Director and Associate Director both have company cars which the company purchased outright rather than lease. Porsche Taycan and Mercedes EQC.
My boss let me know my review date and it lead to me stating ‘ I’d like to look at going salary sacrifice route again for another electric car’.
My boss said we can discuss that however I’d prefer to scrap the salary sacrifice re-instate your full salary and purchase the car outright.
Now for me this would be a win win, salary sacrifice was still a significant net cost however if the company buy it outright as I’ll be going EV I’ll be just paying the BIK which is next to nothing, or am I overlooking any other associated costs?
My boss knows I like my cars and I need 250-300 mile range ideally so I can’t be having a Renault Chloe or whatever there called. If going SS I was looking at Tesla Model Y LR or The Polestar 2 Dual Motor Plus as I’m looking to downsize from the Model X I had on SS. It’s pointless as I have an SUV personal car and I only use the electric for work purposes.
I’ve been reading up but can’t get my head around what the net cost of this would be to my employer on say a circa £50-60k car? Don’t get me wrong I’d gladly take a Taycan but can’t see them out laying that much for me unless it significantly benefitted the business which I can’t see how it can.
We recently had a charger fitted at the office and I could solely use this to charge rather than at home and theoretically wouldn’t need to claim expenses anymore. This would save the company a significant amount in its own right.
In terms of offsetting the car against tax on profits etc any other potential grants etc what is the net cost of a £50k electric car to a limited company?
Other than retention of staff in the current competitive climate and very good profits for the year I can’t see why this would be offered up in Lieu of just continuing the salary sacrifice scheme? It doesn’t appear to be in the interests of the company from a financial perspective as it’s not free it’s only offsetting profits?
The main advantages I can see for the business are staff retention as currently all our rivals are recruiting and everyone is trying to poach each other’s staff.
Further reduction in expenses claims, I assume the business could claim them but I’d personally be at no loss. I’ll solely charge it at work and I’m using their car so in my mind not eligible for expense claims.
Just want to have an understanding of the net cost to the business on a £50k car example so I can be a little more informed when I head into my review.
Any assistance/experience greatly appreciated as I just don’t understand tax from a companies perspective.
I’ve previously utilised salary sacrifice to purchase an EV, the lease is about to come to an end which co-incides with my annual review. I work for a limited company, nobody else on salary sacrifice. Director and Associate Director both have company cars which the company purchased outright rather than lease. Porsche Taycan and Mercedes EQC.
My boss let me know my review date and it lead to me stating ‘ I’d like to look at going salary sacrifice route again for another electric car’.
My boss said we can discuss that however I’d prefer to scrap the salary sacrifice re-instate your full salary and purchase the car outright.
Now for me this would be a win win, salary sacrifice was still a significant net cost however if the company buy it outright as I’ll be going EV I’ll be just paying the BIK which is next to nothing, or am I overlooking any other associated costs?
My boss knows I like my cars and I need 250-300 mile range ideally so I can’t be having a Renault Chloe or whatever there called. If going SS I was looking at Tesla Model Y LR or The Polestar 2 Dual Motor Plus as I’m looking to downsize from the Model X I had on SS. It’s pointless as I have an SUV personal car and I only use the electric for work purposes.
I’ve been reading up but can’t get my head around what the net cost of this would be to my employer on say a circa £50-60k car? Don’t get me wrong I’d gladly take a Taycan but can’t see them out laying that much for me unless it significantly benefitted the business which I can’t see how it can.
We recently had a charger fitted at the office and I could solely use this to charge rather than at home and theoretically wouldn’t need to claim expenses anymore. This would save the company a significant amount in its own right.
In terms of offsetting the car against tax on profits etc any other potential grants etc what is the net cost of a £50k electric car to a limited company?
Other than retention of staff in the current competitive climate and very good profits for the year I can’t see why this would be offered up in Lieu of just continuing the salary sacrifice scheme? It doesn’t appear to be in the interests of the company from a financial perspective as it’s not free it’s only offsetting profits?
The main advantages I can see for the business are staff retention as currently all our rivals are recruiting and everyone is trying to poach each other’s staff.
Further reduction in expenses claims, I assume the business could claim them but I’d personally be at no loss. I’ll solely charge it at work and I’m using their car so in my mind not eligible for expense claims.
Just want to have an understanding of the net cost to the business on a £50k car example so I can be a little more informed when I head into my review.
Any assistance/experience greatly appreciated as I just don’t understand tax from a companies perspective.
