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BIK on EV purchased in 2014

Looking for the most tax efficient way of retaining use of my Tesla Model S bought when BIK was 0%

Hi There,

back in august 2014 I eagerly ordered a Tesla Model S and was sold on the fact that BIK was 0%. With a list price of £85k it seemed to be a good selling point. The car was invoiced in 2014 and delivered in January 2015. The new BIK rules came into effect in April 2015. Since then I've had a not insignificant tax liability which is frustrating considering the rules when ordering the car. My salary is £45k so this pushes me into 40% bracket. Is there any legislation to exempt EVs that were purchased before April 2015? 

 

If not not what is the most tax efficient way of retaining use of the car? I own the company that I bought it through and have a directors loan greater than the value of the car, so selling it to myself could be an option but not preferred. 

The car has depreciated since the new 4 wheel drive versions have been released, but it seems BIK must be calculated based in original list price regardless of whether at that time BIK was even applicable.

any advice and suggestions would be greatly appreciated

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24th Sep 2017 18:04

This isn't a site for free advice; it's (supposed to be) a technical forum for the accountancy profession. If you can afford a company car, you can afford to pay for tax advice about it.

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to Accountant A
24th Sep 2017 18:48

Apologies I must have misunderstood the concept behind the community section on this site. I stumbled across AccountingWeb while looking for the answer online and saw some friendly, knowledgable and helpful community members responding to similar questions.

I can afford to pay for tax advice, and am currently in the process of replacing our previous tax advisor who has recently retired, so thought asking a relatively trivial question would be a good way to find a potential partner. I can see I'm not the first to use that strategy...

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to Sam Colwill
24th Sep 2017 18:53

Sam Colwill wrote:

thought asking a relatively trivial question would be a good way to find a potential partner.

It's not a dating site either.

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to Accountant A
24th Sep 2017 19:03

Or for amateur comedians

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to Sam Colwill
24th Sep 2017 19:08

Sam Colwill wrote:

Or for amateur comedians

I'm here all week.

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24th Sep 2017 19:39

That's just how it is.

Percentages are announced years in advance (we're up to 2020/21 I believe) for the very reason that a car is likely to be retained for three or four years.

List prices used to be discounted after four years but not now.

Up to you whether you dump the Tesla but, unfortunately, you've not looked far enough ahead when you decided to take on this expensive piece of political experimentation.

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25th Sep 2017 08:47

I'd just last it out. BIK is dropping back to 2% in 2021.

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to SteLacca
25th Sep 2017 09:56

Government can't make its mind up.

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