Ready to throw in the towel

[mikeyyn]

sorry, don’t have the time or the energy to reply to this.

Whatever

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[Hirschaj]

sorry, don’t have the time or the energy to reply to this.

You kind of sound like a nutter. Maybe you should explain your position here. Or don’t. ?‍

 

[TaycanHero]

You kind of sound like a nutter. Maybe you should explain your position here. Or don’t. ?‍

He's a regular and seems like a top bloke, so we don't need this haranguing.

Keep it positive.

 

[Hirschaj]

He's a regular and seems like a top bloke, so we don't need this haranguing.

He might be, but he implied some sort of conspiracy related to Felicity Ace and then refused to explain reasoning. I’m curious about it but in the absence of an explanation it’s just noise.

 

[G7SUM]

He's a regular and seems like a top bloke, so we don't need this haranguing.

Keep it positive.

Thank you.

 

[TaycanHero]

Keep your order. There's not really much to lose other than the frustration.

Order any other car and exactly the same thing will happen.

Others have suggested just forget about it. I agree.

I'm focussed on racking up client work and escaping the UK's winter, while scenario planning the global economy turning to absolute sh*t.

I've mentally told myself autumn next year for car delivery. Initial dealer estimate was Feb-May 2023.

PEC is in two weeks.

I am also like others expecting lots of cancellations because of the wait/recession, so may get my car a lot sooner.

 

[mangobay]

I know others have mention the idea already of keeping your order plus buying a used car to keep you interested and happy in the meantime.

I’ve been watching the market closely and while there is a premium to be paid for very nearly new Taycans, there are a few great two year old cars now hitting the market where the value is better. These are still great great cars will all software updated etc and still in warranty.

While it obvs depends on how you’re financing a purchase there’s a lot to be said for hanging onto your order and picking up a second hand 4S to keep your excitement in the meantime. Should be easy to sell when you need to (just don’t assume a massive profit like others seem to be!) and it’s a LOT of car to enjoy in the run up to the GTS.

 

[TaycanHero]

I know others have mention the idea already of keeping your order plus buying a used car to keep you interested and happy in the meantime.

I’ve been watching the market closely and while there is a premium to be paid for very nearly new Taycans, there are a few great two year old cars now hitting the market where the value is better. These are still great great cars will all software updated etc and still in warranty.

While it obvs depends on how you’re financing a purchase there’s a lot to be said for hanging onto your order and picking up a second hand 4S to keep your excitement in the meantime. Should be easy to sell when you need to (just don’t assume a massive profit like others seem to be!) and it’s a LOT of car to enjoy in the run up to the GTS.

Unfortunately not a good solution for those buying it through their business as they can only write off 18% of the cost against corp tax vs brand new where it's 100%.

That said, business owners could fling themselves a directors loan, buy and then sell the car (personal purchase as it's more tax efficient for second hand or even ICE cars) and pay back the loan within the stipulated time frame set by HMRC, but that too could be a huge faff.

Any shortfall in sale price would have to be paid back using personal money.

It seems, at least for business purchases, all that can be done is... wait and be patient.

 

[Dabz]

Others have suggested just forget about it. I agree.

I'm focussed on racking up client work and escaping the UK's winter, while scenario planning the global economy turning to absolute sh*t.
.

very sound advice. I’m doing the same - the money is in a separate account so I’m not looking at it. Focussing on making sure the business doesnt hit any snags in the coming recession and that when the car arrives Q3 or 4 next year it still makes sense to dump 100k on a new toy

 

[mangobay]

Unfortunately not a good solution for those buying it through their business as they can only write off 18% of the cost against corp tax vs brand new where it's 100%.

That said, business owners could fling themselves a directors loan, buy and then sell the car (personal purchase as it's more tax efficient for second hand or even ICE cars) and pay back the loan within the stipulated time frame set by HMRC, but that too could be a huge faff.

Any shortfall in sale price would have to be paid back using personal money.

It seems, at least for business purchases, all that can be done is... wait and be patient.

It would be really interesting to know how much of a proportion of uk buyers are using business purchase route. It’s sounds like a lot!

 

[feye]

As frustrating as it is I can shed some light on the lack of communication. I run a business that imports industrial mechanical plant. The plant is manufactured / assembled in Italy, many components come from various locations such as electronic controllers from an Italian controller supplier but they rely on chips and electronic components from outside the EU etc. The component suppliers have had enough of the constant demand for delivery dates so they now just give a date sometime in the future. The plant manufacturers in turn use this date to estimate a build date for the unit. They then pass this date to my company and we advise our customer accordingly. Once all the components have arrived at our Italian manufacturer it takes (depending on size of unit) 4 to 5 days to build, having waited 10 to 12 weeks for the parts. (pre covid) 20 - 30 weeks post covid. The day arrives when all components are in stock to start the build and without any notice whatsoever from the component suppliers they simply dont arrive. So it’s Monday we are due to collect the unit on Friday and are now told it’s delayed 4 days prior to collection day, however it isn’t the manufacturers fault, it’s several layers deeper than this. When this first happened I would go mental at our manufacturer for not communicating this earlier, but how could they if they themselves were led to believe the delivery wouldn’t be an issue. They are as frustrated as we are.

That reminds me on the ongoing snap lock downs in China. Totally random, totally uncontrollable, without any warning whatsoever! Atrocious! Lot's of components have electronic parts made in China...

 

[gordietbh]

Unfortunately not a good solution for those buying it through their business as they can only write off 18% of the cost against corp tax vs brand new where it's 100%.

But you're only deferring the payment of corp tax not writing it off forever as when you come to sell the car you pay corp tax on the sale price (or rather sale is counted towards taxable profit) so it doesn't make much difference either taking the 100% first year or slowly depreciating it as you would usually...I guess it depends on how long you plan on keeping the car as you're only saving the corp tax on the depreciation not the full amount.

Also don't forget you'll be making more of a saving in future years deprecating it with the current plan to increase corp tax to 25%!

I couldn't be bothered waiting for a new one so I purchased a 6 month old car and will depeprate it as you would any other asset.

 

[TaycanHero]

But you're only deferring the payment of corp tax not writing it off forever as when you come to sell the car you pay corp tax on the sale price (or rather sale is counted towards taxable profit) so it doesn't make much difference either taking the 100% first year or slowly depreciating it as you would usually...I guess it depends on how long you plan on keeping the car as you're only saving the corp tax on the depreciation not the full amount.

Also don't forget you'll be making more of a saving in future years deprecating it with the current plan to increase corp tax to 25%!

I couldn't be bothered waiting for a new one so I purchased a 6 month old car and will depeprate it as you would any other asset.

The corp tax saving is significant. You still pay corp tax on disposal of the company car, as the income is added to your P&L.

Assume a Taycan purchase price of £100k, in year one, you would avoid £15,580 in additional corp tax buying new vs second hand (18% vs 100% written off against taxable profits).

In all future financial years there is no difference, because both scenarios would be the same: you are disposing of a company asset. It would be treated as income and so corp tax must be paid.

It's only the first financial year when you buy the car that sees the corp tax saving.

It's why I am only buying new, because I can do a lot with five figures. Even when it comes to Porsche options, £15k would buy a highly specced car.

Second hand Taycan company purchase, and not only are paying over MSRP, you are also paying a £15k+ premium in corp tax as you can only write off 18% against taxable profits!

Not worth it IMO.

 

[gordietbh]

It's only the first financial year when you buy the car that sees the corp tax saving.

Doesn't the yearly deperiation of assets dectract from corp tax (capital allowances), therefore you are writing off 18% of the value (£18,000/year on a £100k car) and then saving the corp tax on that amount on a yearly basis which is future years will be at a higher percentage than currently (19% vs 25%).

£100k new car 100% write off in the first year = £19k corp tax saving year 1

£100k used car 18% first year = £3420 saving year 1 (19%), £4,500 saving year 2 (25%), £4,500 saving year 3 etc etc.

I'm not an accountant but that is my understanding of it.

 

[TaycanHero]

Doesn't the yearly deperiation of assets dectract from corp tax (capital allowances), therefore you are writing off 18% of the value (£18,000/year on a £100k car) and then saving the corp tax on that amount on a yearly basis which is future years will be at a higher percentage than currently (19% vs 25%).

£100k new car 100% write off in the first year = £19k corp tax saving year 1

£100k used car 18% first year = £3420 saving year 1 (19%), £4,500 saving year 2 (25%), £4,500 saving year 3 etc etc.

I'm not an accountant but that is my understanding of it.

You might be correct, though this is why we hire accountants ?

I would check with your accountant, but doubtlessly buying a new Taycan is still a large corp tax saving, as it's unlikely you'll keep the car 5+ years.

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