Hi Kiran, as an employed solicitor who has now opened a limited company for consultancy work and someone who is due to receive a substantial bonus (performance related) this year, that was a really helpful video. I’ll definitely be purchasing a new electric car give that write off. Thanks for the video. Gurjit.
Elephant in the room is Pensions. if you use any salary sacrifice (cycle to work, car etc) then the amount that you sacrifice from your salary is BEFORE pension deductions. Meaning your salary is lower and thus pension contributions are lower. Also, service cost are comparable with ice cars manufacturer to manufacturer, with the exception of Tesla and Byd.
Hey Kiran, as always fantastic advice, but as a heads up you'll find (as I have to my detriment) that insurance premiums for electric vehicles have gone through the roof, some companies are actively overpricing their policies to discourage the buying of electric cars!). regardless, keep up the great vids!
Must be nice to simply be an employee, demanding holiday pay, sick pay, annual pay rises, pension contributions and not have to worry about running a business..
Buying a used car, doesn't work for companies which pay there full tax liabilty, because funds used will be taxed paid funds and than the fuel cost comes to £4k per year plus maintenance, plus road tax etc. Better to to lease £500 per month and the tax saving plus fuel saving and other maintenence savings makes the the vehicle cost exactly the same but you get to drive an 80k car with warranty. Win win
The sacrifice scheme is more efficient than stated the more you earn. If you are on around 100k a year your tax, Ni and pension contributions are substantial,. Your marginal rate at 100k per year is 60%, chuck in NI etc and you are approaching 80%. If you are in a fixed contribution final salary scheme the pension in particular places you at risk of leveraged government supertax. Paying for an ICE vehicle, fuel and insurance out of taxed income where for each pound you take home net you need to earn five is … daft. Salary sacrifice means the Tesla is either cost neutral or saves you money.
The depreciation is also a tax write off and when you come to sell the car you will pay less tax on the sale of your car. If you're able to prove 100% company use only, you can claim back VAT to.
I noticed hedge funds in the uk are LLPs owned by LLCs which I’m then assuming is owned by an offshore LLC can you explain the tax benefits of this from the owners perspective and why they live in the UK still rather than moving all their business to UAE for example
The miles Using a car to and from your place of work won’t count towards the % business use. As a GP my business use ( once at work ) is under 10% total miles, so even at 45%vtax saving it’s only going to be 4.5% of the ev new value. Rather wait for a decent low mileage 2nd hand. If you are a taxi driver and use it only for work, then you could be near 100% tax relief at your highest rate and a new ev makes great sense.
This is good news for businesses and those able to access this. But the general tax payer is picking the tab for this privilege. Same with a lot of these green deals. Good explanation keep up the good work. As for Tesla good luck with insurance and repairs.
Your making “like for like” comparisons…while the reality is companies like SG Fleet bump up the rental costs pre salary sacrifice - for example an additional £350 on a model Y, which means you lose any tax benefit - making the scheme pointless. This is what the majority of deals look like and you are better off shopping around and looking closely at the contract.
This is true. I just took delivery of a Model y with SG Fleet. The price is bumped up but the monthly cost is still cheaper. I went to Tesla and they said they couldn’t compete. I had no deposit to pay and it includes insurance, tyres and any maintenance. Tesla couldn’t match that at all. Cost me £500 a month for a performance version, which is only a fraction more than my monthly fuel bill.
a lease is another form of debt plus when you come to hand the car back they leaser will go to town on you for additional mileage, damage etc. so in the end cost will be way hire than £800 per month is nearly £10k per year best just pay your mortgage off and buy a fully depreciated Tesla in 10 years time. Tesla cars fall like a stone in terms of depreciation
If you have 20% personal use than you could deduct 80% so say its £100,000 car you could claim £80,000 FYA if you were a LTD company you could claim the full £100,000 regardless of personal use
@@aturan-fo1qt If you have some a ceartin amount of money in your ltd company can you take it out to close the company and pay capital gains tax instead of income tax or will HMRC not let you
Electric vehicles will become liable for vehicle excise duty (VED) £165 for cars costing less than £40k and £355 for above £40k including optional extras on 1 April 2025. The change was announced by Chancellor Jeremy Hunt in the 2023 Autumn Statement, giving motorists two years’ notice to factor it into their household budgets. Wouldn’t be surprised if they scrap most other incentives too
@@yunuspatel780in this case I think it's retrospective, from the RAC website Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
Whilst true, you then as a business owner are clobbered with a large tax bill. Better to invest in a car or indeed machinery to lessen your tax liability
Should be, “why do so many people drive EVs”. In the UK there were 235,000 EVs sold in 2023, only 47,000 were Tesla. So 8 out 10 EV buyers don’t buy a Tesla.
Hi Kiran I like the way you explain things and you have made me money in the past when I invested in Nvidia. Can you do a video which helps people in my situation how to work toward becoming a millionaire within 15-20 years if currently in early 30's earning average salary 35k, has 100k in savings. My goal is to make my next 100k quicker than 7 years and I have 1 investment property. Could you maybe explain what people mean why first 100k is hardest
I wish I earned £3000 a month. We are living in different worlds if you think £5000 gross is a normal salary in the UK. Maybe for bankers and doctors but not for teachers and junior accountants.
Lol electric ? I prefer a gas guzzling BMW M3. Enjoy the cars we have, we are all going to be pushed to electric in the next decade, soon to be nothing but a relic in a museum.
Hi Kiran, as an employed solicitor who has now opened a limited company for consultancy work and someone who is due to receive a substantial bonus (performance related) this year, that was a really helpful video. I’ll definitely be purchasing a new electric car give that write off. Thanks for the video. Gurjit.
The way this man sent her a marriage proposal 🤣🤣
Elephant in the room is Pensions. if you use any salary sacrifice (cycle to work, car etc) then the amount that you sacrifice from your salary is BEFORE pension deductions. Meaning your salary is lower and thus pension contributions are lower.
Also, service cost are comparable with ice cars manufacturer to manufacturer, with the exception of Tesla and Byd.
Just increase the % so the same amount goes in post sacrafice reduces tax even further 🎉
@DaveCYFF it doesn't work like that as it also affects company contributions which are generally capped.
Hey Kiran, as always fantastic advice, but as a heads up you'll find (as I have to my detriment) that insurance premiums for electric vehicles have gone through the roof, some companies are actively overpricing their policies to discourage the buying of electric cars!). regardless, keep up the great vids!
Or you could pay £5k for a used Japanese car, drive it for 5 years, and still have most of your equity in it when you sell it. Rinse and repeat.
Must be nice to simply be an employee, demanding holiday pay, sick pay, annual pay rises, pension contributions and not have to worry about running a business..
@@rlc2978 it probably is. One way to get back at the system.
Typical stingy
Buying a used car, doesn't work for companies which pay there full tax liabilty, because funds used will be taxed paid funds and than the fuel cost comes to £4k per year plus maintenance, plus road tax etc. Better to to lease £500 per month and the tax saving plus fuel saving and other maintenence savings makes the the vehicle cost exactly the same but you get to drive an 80k car with warranty. Win win
1000 a year ain't much of a tax right off
love this yet another helpful video thank you
her voice is so gentle and calm.
The sacrifice scheme is more efficient than stated the more you earn. If you are on around 100k a year your tax, Ni and pension contributions are substantial,. Your marginal rate at 100k per year is 60%, chuck in NI etc and you are approaching 80%. If you are in a fixed contribution final salary scheme the pension in particular places you at risk of leveraged government supertax. Paying for an ICE vehicle, fuel and insurance out of taxed income where for each pound you take home net you need to earn five is … daft. Salary sacrifice means the Tesla is either cost neutral or saves you money.
Thanks for this concise explainer. Does the tax write apply to all types of businesses, ie. do you have to justify business use?
The high depreciation rate of luxury EVs will void this “discount” in less than a year
The depreciation is also a tax write off and when you come to sell the car you will pay less tax on the sale of your car. If you're able to prove 100% company use only, you can claim back VAT to.
Second hand cars do not have VAT like new cars do.
Glad your enjoying your M3
M3P please
Well done' Great video. ❤
I noticed hedge funds in the uk are LLPs owned by LLCs which I’m then assuming is owned by an offshore LLC can you explain the tax benefits of this from the owners perspective and why they live in the UK still rather than moving all their business to UAE for example
Nice video Kiran, good explanation
How about buying tesla through a charity organisation in the UK? Does it offer any advantages?
The miles Using a car to and from your place of work won’t count towards the % business use. As a GP my business use ( once at work ) is under 10% total miles, so even at 45%vtax saving it’s only going to be 4.5% of the ev new value. Rather wait for a decent low mileage 2nd hand. If you are a taxi driver and use it only for work, then you could be near 100% tax relief at your highest rate and a new ev makes great sense.
FYA for Ltd companies is 100% no deduction for personal use. Partnership and sole traders have deductions for personal use
Very good video, clear and consise 👍🏾👍🏾👍🏾👍🏾
Hi, can you lease a 2nd Tesla through UK LLP? Thanks
Thanks for your advice Kiran
Great video, Kiran. Thanks!
Awesome video.. kkkk kiran will reach 1m subs.
This is good news for businesses and those able to access this. But the general tax payer is picking the tab for this privilege. Same with a lot of these green deals. Good explanation keep up the good work.
As for Tesla good luck with insurance and repairs.
20k business miles a year for a long range model 3 is £1500 fully comp
Repairs are paid for under the scheme, so is insurance. It's all in.
Hi thank you, does salary sacrifice only apply when leasing an EV or are we able to benefit when buying an EV through say a HP or PCP?
Surely this applies to any EV and not just Tesla’s?
Your making “like for like” comparisons…while the reality is companies like SG Fleet bump up the rental costs pre salary sacrifice - for example an additional £350 on a model Y, which means you lose any tax benefit - making the scheme pointless.
This is what the majority of deals look like and you are better off shopping around and looking closely at the contract.
This is true. I just took delivery of a Model y with SG Fleet. The price is bumped up but the monthly cost is still cheaper. I went to Tesla and they said they couldn’t compete. I had no deposit to pay and it includes insurance, tyres and any maintenance. Tesla couldn’t match that at all. Cost me £500 a month for a performance version, which is only a fraction more than my monthly fuel bill.
What about If your self employed?
Can please do a video on this
a lease is another form of debt plus when you come to hand the car back they leaser will go to town on you for additional mileage, damage etc. so in the end cost will be way hire than £800 per month is nearly £10k per year best just pay your mortgage off and buy a fully depreciated Tesla in 10 years time.
Tesla cars fall like a stone in terms of depreciation
Hi good video thanks
What about self employed ev buyers
This is what I want to know also
If you have 20% personal use than you could deduct 80% so say its £100,000 car you could claim £80,000 FYA if you were a LTD company you could claim the full £100,000 regardless of personal use
Amazing video
As a business owner what happens when I sell the car?
Except the markup the lease companies charge negate the savings
Exactly this, my company offer EV salary sacrifice. The lease company take something like 75% of the tax saving.
Does the 100% first year allowances apply to individuals or only business owners?
Businesses claim write down allowances. Personal tax accounts don't include the writing down of a personal assets..
@@rlc2978 Thanks
hello, so if you change an employer, would there any chance it would be carried over to the new employer?
Depends on the agreement, but normally you need to return it if you are leaving.
@@aturan-fo1qt If you have some a ceartin amount of money in your ltd company can you take it out to close the company and pay capital gains tax instead of income tax or will HMRC not let you
Can you please tell us how to avoid inheritance taxes.
Don’t die?
Trust funds. But a tax specialist will set them up. It will cost alot but we'll worth it
Buy a hotel
Electric vehicles will become liable for vehicle excise duty (VED) £165 for cars costing less than £40k and £355 for above £40k including optional extras on 1 April 2025. The change was announced by Chancellor Jeremy Hunt in the 2023 Autumn Statement, giving motorists two years’ notice to factor it into their household budgets. Wouldn’t be surprised if they scrap most other incentives too
@@yunuspatel780 normally only applies to cars purchased after the date for VED
@@yunuspatel780in this case I think it's retrospective, from the RAC website
Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
you forgot to say when you sell the car in a ltd company now you have to pay tax on the total selling price. so really not saying that huge amount.
what happens if - a person uses their job in a scheme like this? Can they give the car back...if so who to? Or can they sell it?
Simple. It is among the most efficient evs available and therefore very cheap to own.
The best option is not to buy at all if possible.
Whilst true, you then as a business owner are clobbered with a large tax bill. Better to invest in a car or indeed machinery to lessen your tax liability
its the insurance that scares me
I’m 45 and I drive a Tesla model 3 long range.
0-60 in 4.2s and I pay £850 per year.
@@chazproukur 45 is the point. I’m below 30
@@nyasha3416
Then yes, you should be looking at cheaper cars and use the money saved to invest.
Should be, “why do so many people drive EVs”. In the UK there were 235,000 EVs sold in 2023, only 47,000 were Tesla. So 8 out 10 EV buyers don’t buy a Tesla.
Not the case in the UK. Overpriced and zero used market for EV's.
Elon's Musk's contribution to Zanussi. Thanks for explanation. So that explains why I see so many white goods vehicles.
The problem is the lease companies bump up the price to make salary sacrifice worth it - but not as good as it could be.
If I see a Tesla I think - "Keeping Up With The Jones" and.. boring! :)
If I see Rob Stone I think , must be on the dole , bless him..
All battery cars are 100%tax right off
Hi Kiran I like the way you explain things and you have made me money in the past when I invested in Nvidia. Can you do a video which helps people in my situation how to work toward becoming a millionaire within 15-20 years if currently in early 30's earning average salary 35k, has 100k in savings. My goal is to make my next 100k quicker than 7 years and I have 1 investment property. Could you maybe explain what people mean why first 100k is hardest
I wish I earned £3000 a month. We are living in different worlds if you think £5000 gross is a normal salary in the UK. Maybe for bankers and doctors but not for teachers and junior accountants.
Because it is the best selling car and best car in the world by statistics a little research based on facts will tell you this
Get some discount of some poo.... Like the tax break on pension contributions, the working man never wins....
5 grand a month, this women is talking to the minority
Send me one 😂❤
Im planning to open my own business. And i have found my account now.thsnk you for your advice
This is why corporate drones stay poor and need to keep working
As ever in life
The rich get richer.
Buy Nvidia and earn some side hustle tax free money on ISA
By a used car. That's more efficient
Lol electric ? I prefer a gas guzzling BMW M3. Enjoy the cars we have, we are all going to be pushed to electric in the next decade, soon to be nothing but a relic in a museum.
You haven't driven one have you? Anyway, forget your new BMW and go get a horse and cart so they don't become relics
fake accent
What a beautiful woman
I had to rewatch this a few times as her beauty is distracting.