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Post by Deleted on Dec 4, 2017 12:30:48 GMT
Just had the smile taken off my face by our new accountant, who made it clear to me that Espadrille's Evoque costs us almost £10,000pa in Company Car Tax, NIC and the cost of leasing (ignoring the fuel, servicing and insurance costs).
Whilst everyone suffers from depreciation (and leasing sheilds you from that), £10,000pa is a huge figure which quite simply is ridiculous and I blame myself for pandering to her desires without thinking about the consequences and was taken in by a good lease deal. Effectively, we are paying 100% of the BIK in all the aforementioned costs (CCT, NIC and lease). She is a 40% tax payer and as we own the company, all savings come back to our pocket.
Having done some homework, I realise that I need to her get a car which has a BIK, not of almost £10,000, but significantly lower and hopefully a lower lease cost. However there is a balance to be drawn and I bet an i3 which is expensive but with a very low BIK would acheive the sort of saving I am seeking. Ideally I would like to get down to a total cost of £5,000 - £6,000.
So, having drwan her attention to the money side, I would love her to try the new Leaf as well as the i3 and e-Golf. The downside to Espadrille is that whilst she is game for many things (including lots of outdoor activities, like walking in the wet, cold wind, down a muddy track for hours on end), she is a car snob and needs something 'different' or 'branded'. However being practical (in terms of range anxiety), she also fancies a MINI cabrio, which actually might do the trick, especially now the children are growing up and from next September, we might only have one child at home.
Not having had a company car for a very long time, I wonder what alternatives we have? Would a PCP work?
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Post by Humph on Dec 4, 2017 13:05:42 GMT
Try this tool Espada, you can use it in all sorts of ways, but what I'd recommend is plugging in your/her car choices and salary and it calculates the tax burden for this year and shows you how that might change over time. comcar.co.uk/ |
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Post by Deleted on Dec 4, 2017 13:25:23 GMT
Thanks - that is something to play with....A few interesting cars pop up which I had not realised were so low in BIK..
Just spoken to a car lease broker I use. He is going to let me know what deals are around in February for May delivery.
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WDB
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Post by WDB on Dec 4, 2017 16:32:15 GMT
Just had the smile taken off my face by our new accountant, who made it clear to me that Espadrille's Evoque costs us almost £10,000pa in Company Car Tax, NIC and the cost of leasing... Good grief! I might expect that as a depreciation hit in year 1, but every year? What's the tax value of the car? |
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Avant
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Post by Avant on Dec 4, 2017 18:04:46 GMT
Does Espadrille ever do long journeys? If not, she'll probably like the i3, which will seem more prestigious than the Leaf - although the Leaf has more room for people. If she does, then there are the Audi A3 e-tron and the Golf GTE. I'm no espert on leasing, but if the same applies as to PCPs, the Audi won't be much, if any, more expensive than the Golf, as Audis hold their value particularly well.
SWMBO had a Mini Cooper Cabriolet, then a Roadster, before the current Audi A1: the A1 is livelier, more fun to drive and much more refined than the Minis. But yes, a convertible is a nice thing to have in summer.
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Post by Deleted on Dec 4, 2017 18:47:19 GMT
>> £10,000pa in Company Car Tax, NIC and the cost of leasing
But the cost of leasing is probably £8,000 of that, isn't it? Depending on the upfront payment, mileage, length of lease etc. Mind you, if your new accountant is the first to tell you it total cost then I'd be taking the old accountant off your Christmas card list.
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Post by Humph on Dec 4, 2017 19:37:01 GMT
>> £10,000pa in Company Car Tax, NIC and the cost of leasing But the cost of leasing is probably £8,000 of that, isn't it? Depending on the upfront payment, mileage, length of lease etc. Mind you, if your new accountant is the first to tell you it total cost then I'd be taking the old accountant off your Christmas card list. You might be surprised at how much the BIK is for a higher rate taxpayer on a Range Rover Evoque. Depends on the model of course, but if it's a 4x4 auto then it'll be eye watering. We are a most put upon sector of society you know. 😉 Edit - I've just put a mid range Evoque into the tax calculator I mentioned above and it would currently cost £4182 a year in tax and that will rise to £5078 within the next two years for a high rate taxpayer. |
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Post by Deleted on Dec 4, 2017 19:50:37 GMT
Dear God, that's a lot of dosh. Surely only worth while if, like you, one is ramping up the miles.
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Rob
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Post by Rob on Dec 4, 2017 19:59:10 GMT
Don't base savings on BIK rate of 9% for 2017/18 tax year. Next year a PHEV will be 13%. To be honest.... I don't feel to sorry for Espdada. His wife like him is a higher rate tax payer and therefore both have good jobs. Presumably both are directors and also get dividends too. Yes they could have even more take home salary but part of that is down to having cheaper cars. Their choice and I am sure they have a good quality of life.  |
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Post by Humph on Dec 4, 2017 20:00:05 GMT
Absolutely, but even so, I'd still quite like you to feel sorry for me and share my sense of the injustice of it all.
😉
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Deleted
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Post by Deleted on Dec 4, 2017 20:10:09 GMT
Car is an Evoque SE Tech 2wd diesel. Miles are about 7,500pa. BIK is £9,600. Leasing is about £3,750 over the total spend. The balance is tax and NIC. Gulp... Yes we have a high standard of living so don't cry for me, but £10,000 is a lot when mostly the driving is local, partly family and mostly business.. We also put miles on the car when we go out walking for the day with the dog, but I could do that in the E350. In reality, anything with four seats would do - the dog is so small the boot is not vital. She recognises the situation and the fact that if we can save £5,000 then that is better in our pockets than the tax man. But equally, given our good standard of living, why not have a nice car - its not as if she wants a full size Range Rover - just something she feels good about getting into, just like I feel good about getting my Merc. First World problems....They will get solved. And yes - the old accountant is not getting a Christmas card, more likely a Letter before Action...  |
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Post by Deleted on Dec 4, 2017 20:10:29 GMT
I would Humph, but.....
I think you do it to yourself to a large extent. Your chosen style of working causes you put the burden upon yourself. Absolutely nothing wrong with that at all, we all do it, but it does rather screw up your case for receiving sympathy.
Why was it you didn't buy the last car and run it into the dirt? I do recall there was a sensible reason, but I don;t remember what it was. Reliability perhaps?
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Post by Humph on Dec 4, 2017 20:14:08 GMT
That and an amount of inertia sprinkled with a small measure of vanity perhaps.
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Deleted
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Post by Deleted on Dec 4, 2017 20:23:12 GMT
I'm sure I've said this before but the depreciation of an S Class just made me think. And once I started thinking I just have never been able to bring myself to spend that amount of money on a car again.
When I was working at Cambridge I was living near Oxford and the daily commute amounted to something like 45,000 miles in a year. I did it in a fully equipped but older V70 that I paid about £2,000 for. Total comfort, bugger all cost. I sold it almost 2 years later with about 170,00 miles on, or something like that. I don't remember what I got for it, but it was a reasonable amount.
Certainly less than the S Class depreciated in a month simply sat on the drive.
I love a new and impressive car and *very* much admire those owned by my friends. Just not enough to pay for one. I used to, but not anymore. Rather buggers up the midlife crisis to be honest, bu maybe I've overshot that a bit anyway.
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Post by Humph on Dec 4, 2017 20:29:05 GMT
If Espadrille went back to a Juke for example, a top of the range 1.2 petrol one would be £1994 bik rising to £2409 in two years. Saving a bit over £2000 a year in tax versus her current car. That's quite a lot of Creme eggs if you think about it.
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