How would you finance a Tesla with a Ltd company

[Callumlj]

Hi just wondering how the best way to get a Tesla is when having a Ltd company. If we had the funds I would buy it outright as I think that is best due to the used prices being so high.

I have been looking a pcp etc but can’t understand if that is a good deal ?

Any help would be great

 

[Zilla91]

I've just ordered one through my company. My accountant suggested going down the PCP route as I could write off the full amount for the car in one go whereas the lease would spread that out over the term

 

[LFletcher23]

Can I ask who you are going to use to do the PCP through your company?

 

[Zilla91]

Black horse

 

[JonB]

How would you finance a Tesla with a Ltd company?​

First thing I'd do is ask an accountant.

 

[LFletcher23]

Black horse

Thanks. Did you go via the Tesla website (I know that there is a PCP option for personal finance) or contact them directly?

 

[LukeUK]

EVs qualify for 100% first year allowance, so you can write them off against tax, assuming your tax bill is large enough.

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first year allowances.

www.gov.uk

I'm not sure what the situation would be when/if you come to sell the car?

You can reclaim 50% of the VAT if you lease;

Charge, reclaim and record VAT

How to charge VAT, calculate VAT, VAT rates, reclaim VAT on business expenses, keep digital records.

www.gov.uk

EV BIK is 1% this year, 2% next year and the year after. Company car advisory fuel rate is currently 5p/mile, ok if you charge at home, a problem if you supercharge often.

Advisory fuel rates

Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.

www.gov.uk

 

[UkNorthampton]

EVs qualify for 100% first year allowance, so you can write them off against tax, assuming your tax bill is large enough.

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first year allowances.

www.gov.uk

I'm not sure what the situation would be when/if you come to sell the car?

You can reclaim 50% of the VAT if you lease;

Charge, reclaim and record VAT

How to charge VAT, calculate VAT, VAT rates, reclaim VAT on business expenses, keep digital records.

www.gov.uk

EV BIK is 1% this year, 2% next year and the year after. Company car advisory fuel rate is currently 5p/mile, ok if you charge at home, a problem if you supercharge often.

Advisory fuel rates

Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.

www.gov.uk

Many accountants didn't know about company cars in general and EVs in particular a couple of years ago, few people did company cars as they were taxed highly. I hope that's improved.

Be careful of VAT, certainly when you buy - it has a high bar for being VAT-free.

You might buy a Tesla/EV, get 100% First Year Allowance, even depreciation depending on whether you have enough tax to offset in the first year. "Book value" might be very low but if you sell above this, it ends up being a taxable profit AFAIK, do own research etc. I think you don't get the depreciation in the year you sell a car.

Worth checking if you charge/supercharge via a charge/"fuel card" scheme for business miles - it might be claimable. I can't find a decent link right now, but worth researching.

PCP/Hire Purchase might allow 100% First Year Allowance, lease doesn't (AFAIK, do own research)

 

[Zilla91]

Thanks. Did you go via the Tesla website (I know that there is a PCP option for personal finance) or contact them directly?

Yep, through the Tesla website