Some Advice Please

[senwar]

I just checked the insurance quotes and you're right... not much difference... that opens it up for me! Cheers

was going to say similar - my ST GTS has been cheaper to insure than my CT4. Bizarre.

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[UKPerson]

FYI, in your original post you mentioned "eligible for 100% first year tax relief if bought through my company."

In case you didn't know, you can still offset the purchase price of a second hand EV against company profits - it is just that it is done over several years rather than in year 1. But the end saving is the same.

I've done this myself. I'm a little hazy on the details but it's something like:

2nd hand 18% writing down allowance.
Assume £100K
18K of 100K in year 1
18% of 82K in year 2
18% of remaining value in year 3
And so on (I did this before Labour's budget - don't know if anything has changed)

If you sold the car then you would crystallise any depreciation that has occurred. So, assuming you sold after 1 year and (for easy figures!) had 50% depreciation on a £100K purchase, you would then write off:

£50K minus already claimed depreciation:

= 50-18
= £32K write off against profits at point of sale

So if you don't mind the cashflow implication, this allows you to access the much, much cheaper pool of 2nd hand Taycans. You can get an incredible deal and pay way less than you would buying new / very nearly new. That will probably save more than the immediate write down benefit you would lose.

 

[Persuader]

FYI, in your original post you mentioned "eligible for 100% first year tax relief if bought through my company."

In case you didn't know, you can still offset the purchase price of a second hand EV against company profits - it is just that it is done over several years rather than in year 1. But the end saving is the same.

I've done this myself. I'm a little hazy on the details but it's something like:

2nd hand 18% writing down allowance.
Assume £100K
18K of 100K in year 1
18% of 82K in year 2
18% of remaining value in year 3
And so on (I did this before Labour's budget - don't know if anything has changed)

If you sold the car then you would crystallise any depreciation that has occurred. So, assuming you sold after 1 year and (for easy figures!) had 50% depreciation on a £100K purchase, you would then write off:

£50K minus already claimed depreciation:

= 50-18
= £32K write off against profits at point of sale

So if you don't mind the cashflow implication, this allows you to access the much, much cheaper pool of 2nd hand Taycans. You can get an incredible deal and pay way less than you would buying new / very nearly new. That will probably save more than the immediate write down benefit you would lose.

This is what I did with my first Taycan in 2020.
This can also be done with a new vehicle, if anyone does not wish/has reasons to not claim the 100% WDA.
I don't believe that it is allowable however to crystallise any remaining loss at point of sale though. It is my understanding that you keep claiming the 18% on a reducing balance even though you no longer own the car exactly the same as vehicles in the normal 6% pool.
I didn't have this issue though as my sale price was higher than the written down value and so I had to back charge myself a small amount.

 

[ct4s]

FYI, in your original post you mentioned "eligible for 100% first year tax relief if bought through my company."

In case you didn't know, you can still offset the purchase price of a second hand EV against company profits - it is just that it is done over several years rather than in year 1. But the end saving is the same.

I've done this myself. I'm a little hazy on the details but it's something like:

2nd hand 18% writing down allowance.
Assume £100K
18K of 100K in year 1
18% of 82K in year 2
18% of remaining value in year 3
And so on (I did this before Labour's budget - don't know if anything has changed)

Best you double check the 2nd hand rate tax benefit.
Isn’t it 18% times your corp tax rate and not a straight 18% of the reducing balance?
Quite a large difference.

 

[UKPerson]

After @Persuader replied I checked this and he appears to be correct. I don't think you get to crystallise your loss when you sell. But I do read it that you get to write down 18% of the remaining balance of the amount paid for the car each year. I'm certainly no tax expert though so if I've read this wrong apologies.

https://www.thp.co.uk/electric-cars-and-tax/
What happens if I buy a second-hand or hybrid electric car?
If you buy a second-hand electric car, it does not qualify for the enhanced capital allowance. This means you can’t deduct 100% of the cost against your pre-tax profits in the first year.

Instead, you can claim an annual main rate allowance of 18% of the car’s value. The same is true if you have a new or second-hand car with emissions of 50g/km or less. If you buy either a new or second-hand car with emissions over 50g/km, then you benefit even less. In these cases you can claim only a special rate allowance of 6% of the car’s value each year.

 

[Cappo]

Nice work @UKPerson @Persuader & @ct4s !

I will most likely buy a 2-3 year old Taycan and do it that way. Just have to wait patiently until a car that ticks all the boxes shows up!

Anyone have experience of the Burmester sound system? I’m quite an audiophile and wonder if it’s significantly better than the Bose system. I do have a subwoofer that I could use to improve the Bose if needed. Seems like the Burmester is a rare option.

Cheers!

 

[Persuader]

Thanks for the mention but I've never had the Burmester, only the Bose.
Sorry that I can't advise.

 

[4sCT21]

Nice work @UKPerson @Persuader & @ct4s !

I will most likely buy a 2-3 year old Taycan and do it that way. Just have to wait patiently until a car that ticks all the boxes shows up!

Anyone have experience of the Burmester sound system? I’m quite an audiophile and wonder if it’s significantly better than the Bose system. I do have a subwoofer that I could use to improve the Bose if needed. Seems like the Burmester is a rare option.

Cheers!

@f1eng is your man re audio.

 

[Midlifecrisis]

I don’t think it is worth it from what I have seen on here. I think @tigerbalm had Burmester and the Bose - iirc there isn’t much between them when you are driving. I doubt whether it should be a deal breaker

 

[Cappo]

I don’t think it is worth it from what I have seen on here. I think @tigerbalm had Burmester and the Bose - iirc there isn’t much between them when you are driving. I doubt whether it should be a deal breaker

Ok thanks. Would be good to hear from anyone who has compared them ?

 

[Midlifecrisis]

Try this
https://www.taycanforum.com/forum/t...urbo-s-cross-turismo.20439/page-4#post-313543

 

[Cappo]

Try this
https://www.taycanforum.com/forum/t...urbo-s-cross-turismo.20439/page-4#post-313543

Thanks very much

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