UK Budget - good news

[Wizz]

I did, but then I’m probably an idiot…

That makes 2 of us

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[Murph7355]

Fully back on topic...
Interesting article today.
https://cardealermagazine.co.uk/pub...or-government-incentives-polestar-boss/309505

Grifting.

A very cursory look suggests registrations down 37% in July...

But 60% down in Germany and 70% in Australia. Presumably those countries aren't doing enough either ?

https://eletric-vehicles.com/geely/polestar/polestar-sees-37-drop-in-uk-registrations/

I still don't believe they can be sold at all in France!

Manufacturers and buyers need to change mindset in terms of replacement cycles. But the same applies with other products IMO - phones, TVs etc.

New shiny isn't sustainable.

 

[The Riddler]

That makes 2 of us

Maybe it’s everyone else!!

 

[gramorris]

Company owners / drivers will eventually be taxed out of EVs given that BIK will increase 1% point each year and the tax is charged on the retail price of the car not how it’s valued in the company accounts.
Imagine paying 9% or more BIK (multiplied by your tax rate) on the list price of a Turbo S when it’s been devalued 75%.
Co car tax legislation is utterly ridiculous.
They should encourage companies to buy 2nd hand and / or keep cars for longer, and charge BIK on the value of the car.

i don’t know about this. If you look at the benefit like an interest free loan it would take 15 yrs to pay back the tax incentive in BIK if BIK is 9% and you’re a higher rate tax payer.

the benefit is also in place to fill up the used market, since the majority of private buyers are used buyers. In that regard it’s done a good job it’s just regular buyers haven’t particularly started buying used EVs en-masse yet.

I do think there’ll be a tipping point for me where, if I keep a Taycan or any EV long term, it’ll make sense to buy the car off the company. That’ll be when the annual BIK charge exceeds 55% (I think) of the car’s annual depreciation. That’s because in my mind the benefit is not on the value of the car but on the depreciation.

I worked that out on the fly since it’s not really a consideration while BIK is £80/m and depreciation is £1.5k/m ?‍

 

[Browning]

I did, but then I’m probably an idiot…

Me to but what a car still love it

 

[alexsas]

BIK at 2% is more or less compensated by the insurance tax expense, so my theory was it didn’t matter that I pay BIK on the new value because insurance costs don’t go down with depreciation.
Not a perfect theory but worked for me

 

[Midlifecrisis]

While the car remains in the company, insurance, servicing, tyres, extended warranty etc all come from pre tax company money. It is difficult to know when to buy the car from the company. Not yet, but if I do, it will have new tyres, a recent service and plenty of extra warranty!

 

[gramorris]

& a redshift chip, we can do that right?

 

[bn8959]

While the car remains in the company, insurance, servicing, tyres, extended warranty etc all come from pre tax company money. It is difficult to know when to buy the car from the company. Not yet, but if I do, it will have new tyres, a recent service and plenty of extra warranty!

When I did the man maths on mine before I bought it, I estimated year 4 or 5 would be optimal to transfer ownership out of the company and pay the income tax on the market value. That is unless I was going to chop it in for a new one around that time. The higher depreciation may have changed that a bit. Likely make it more likely I’ll transfer ownership earlier and keep it longer.
However being able to run all expenses through the business effectively pre-tax also represents a huge saving!

 

[Fish Fingers]

While the car remains in the company, insurance, servicing, tyres, extended warranty etc all come from pre tax company money. It is difficult to know when to buy the car from the company. Not yet, but if I do, it will have new tyres, a recent service and plenty of extra warranty!

Don't forget to leave some gold ingots in the boot along with the charging lead.
?

 

[Deleted member 7514]

Sadly Luxury car tax will also apply on all EVs from April 2025 for 6 years meaning an extra £2300+ over the 6 years.. that will be a killer although road tax on non EVs is going up even more than the 0 to £190 for us…

If buying a new car register it before 1 April 2025 !

 

[Bennachie]

Rachel Thieves............................

 

[tophamn]

Sadly Luxury car tax will also apply on all EVs from April 2025 for 6 years meaning an extra £2300+ over the 6 years.. that will be a killer although road tax on non EVs is going up even more than the 0 to £190 for us…

I intend to SORN my car in March then immediately re-tax it so I get another full year at £0 ?.

 

[Midlifecrisis]

I intend to SORN my car in March then immediately re-tax it so I get another full year at £0 ?.

I don’t think you need to SORN it. I did this last March and just taxed it. It warned me that I might pay twice if I did this then it let me do it. Now my tax renewal date is March 2025

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