6.9% finance rate jumped to 10.9%!!

[jahall333]

It’s how bad one wants it I guess, I would rather save up and pay cash and keep the 25k in my pocket. But I’m looking from a consumer perspective. If you buy this on your company and you can deduct the interest it might be a different story. I‘m not familiair with the UK specifics.

In the UK I can deduct the full £90K purchase price from my company profits in the year of initial purchase... Saving approx £20k-£22k in corporation tax...
Which I suppose pays for the finance charges...
I hadn't thought of it that way! !
?

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[Dabz]

Not on a pcp deal I don’t think? Or you’d get a CT liability at the end and if you don’t have the cash that could put the business in a tricky spot

 

[jahall333]

Not on a pcp deal I don’t think? Or you’d get a CT liability at the end and if you don’t have the cash that could put the business in a tricky spot

As my company is buying the car then full corporation tax relief in the year of purchase is applied, saving approx £20K... At the end of the deal, after the £48k balloon payment, I can sell the car, hopefully for more than £48k! Then the company pays Corporation tax on the sale price as itld it was profit.. basically the net result over time is corporation tax relief on the difference between the initial cost price and the eventual sell price...
And spread over the 4 years, there's corporation tax relief on the finance charges too..
Plus, all running costs; insurance, tyres, charging etc. are all paid for by the company and are legitimate business expenses and therefore subject to corporation tax relief..

 

[Dabz]

Weird, my accountant explained it differently for pcp. I’m doing cash (Ltd co) for the full tax relief as I was advised pcp doesn’t work quite the same way in terms of the 100% year 1 relief

 

[jahall333]

Weird, my accountant explained it differently for pcp. I’m doing cash (Ltd co) for the full tax relief as I was advised pcp doesn’t work quite the same way in terms of the 100% year 1 relief

I'll check with my accountant over the coming days.. cheers ??

 

[jahall333]

Weird, my accountant explained it differently for pcp. I’m doing cash (Ltd co) for the full tax relief as I was advised pcp doesn’t work quite the same way in terms of the 100% year 1 relief

PCP through business:

 

[Dabz]

That’s what I thought - CT relief on the deposit. You said you’d save 20k in tax? But you’d save 19-25% of the deposit only, and then the same on the ongoing payments.

 

[jahall333]

That’s what I thought - CT relief on the deposit. You said you’d save 20k in tax? But you’d save 19-25% of the deposit only, and then the same on the ongoing payments.

I'm thinking there's conflicting info out there.. I'm using a fairly large accountant firm and taking to one of the partners, I'll have to check further.. confused.com!

 

[jahall333]

That’s what I thought - CT relief on the deposit. You said you’d save 20k in tax? But you’d save 19-25% of the deposit only, and then the same on the ongoing payments.

From the horse's mouth?
https://www.gov.uk/capital-allowances/first-year-allowances

 

[JimmerzK]

The rates from Porsche here in Ireland were really uncompetitive. I went to my own bank who were almost 10k cheaper over the term. In short, shop around!

 

[Redhot2474]

Hello all...
I placed my order for a RWD with really nice set of options last June.. signed the paperwork, interest rate of 6.9% and blah blah..
Had an email a couple of weeks ago, car gone up circa £2,000 and interest rate now 10.9%... over 4 years this all adds £14,000 to the total price!!
Sticking with it, but just gutted, feel ripped off.. sales advisor said "you can have your deposit back and walk away of you want.."
That's not what I've been waiting for for 40 years since I was a kid !
Ranting I realise.. everyone else in the same boat..?

Buy used

 

[jahall333]

Buy used

It has to be fully electric and new to be eligible for the 100% allowance against corporation tax

 

[Dabz]

From the horse's mouth?
https://www.gov.uk/capital-allowances/first-year-allowances

You can claim 100% allowance on the purchase, but you aren’t purchasing, you’re financing. You can only claim relief on money spent not money committed to spend in future. Though if you’re using a large accountancy then maybe they know something others don’t

 

[jahall333]

You can claim 100% allowance on the purchase, but you aren’t purchasing, you’re financing. You can only claim relief on money spent not money committed to spend in future. Though if you’re using a large accountancy then maybe they know something others don’t

Well, my cousin bought a Taycan 18 months ago through his business using porsche finance.. his deposit was £10k, then payments over 4 years, a balloon payment at the end... His accountant did his corporation tax return last year and claimed CT relief for the full OTR price of the car in pay years accounts... All went through fine...
My accountant independently provided the same advice to me, and will be doing the same...
Are you purchasing in the same way?

 

[jahall333]

Well, my cousin bought a Taycan 18 months ago through his business using porsche finance.. his deposit was £10k, then payments over 4 years, a balloon payment at the end... His accountant did his corporation tax return last year and claimed CT relief for the full OTR price of the car in pay years accounts... All went through fine...
My accountant independently provided the same advice to me, and will be doing the same...
Are you purchasing in the same way?

"In pay years accounts" should read "in last years accounts"...

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