Latest News

Welcome to the latest news section of our website, providing company updates as well as developments from the accounting sector.

Latest News

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
26
Sep

Company car examples - Tesla v. Mercedes Hybrid

Posted on in Tax
  • Font size: Larger Smaller
  • Hits: 2932
  • Print

With many car manufacturers moving towards Electric only production (currently Jaguar Land Rover & Volvo making recent announcements), the electric car is becoming more prominent in the UK marketplace. Added to the increasingly popular modern designs, the tax reliefs available are also proving to be very advantageous as car manufacturers are really seeming to listen to HMRC's request for lower emitting cars. The development see's a much improved choice of electric vehicle becoming available in today's market offering better range and features compared to vehicles on offer in the past couple of year's.

Please see below for a couple of worked examples on Electric vehicles compared with less tax efficient vehicles.

In the examples you will see;

  • Closer cash neutral position in year 1 for electric vehicles (highlighting the advantage of upfront tax savings on electric models).
  • Substantially lower personal tax and company tax position year on year for electric vehicle (highlighting the ongoing tax savings that can be made).
  • The narrowing gap of fact by fact performance of electric vehicle compared with the hybrid example.
  • The wider of choice of electric vehicle offering (highlighting the lower end cheaper alternatives that still offer substantial tax savings).

Tesla Model S 75 kWh RWD Auto

Key facts and data
0-60 4.3 secs
HP 328
Top Speed 140 mph
Range/MPG 298 miles
   
OTR Price £68,880.00
CO2 N/A
BIK% 9%
   
Personal tax position p/annum
BR Tax Due £1,239.84
Class 1A NIC £855.49
   
Corporate tax position p/annum
Tax saving Year 1 (exlc. running costs) £13,087.20
Tax saving Year 2 and onwards  
   
Deposit on purchase £15,000.00
5 Year HP - Monthly payment £985.00

 

 

Mercedes Benz S-Class Saloon S 350 CDI BlueTEC Hybrid L AMG Line G-Tronic Plus

Key facts and data
0-60 7.6 secs
HP 204
Top Speed 155 mph
Range/MPG 62 miles
   
OTR Price £72,260.00
CO2 120
BIK% 23%
   
Personal tax position p/annum
BR Tax Due £3,323.96
Class 1A NIC £2,293.53
   
Corporate tax position p/annum
Tax saving Year 1 (exlc. running costs) £2,471.29
Tax saving Year 2 £2,026.46
Tax saving Year 3 £1,661.70
Tax saving Year 4 £1,219.16
Plus future savings on WDA...  
   
Deposit on purchase £15,000.00
5 Year HP - Monthly payment £1,050.00

 

 

Tesla Model 3 50 kWh

Key facts and data
0-60 5.6 secs
HP 258
Top Speed 130 mph
Range/MPG 220 miles
   
OTR Price £26,000.00
CO2 N/A
BIK% 9%
   
Personal tax position p/annum
BR Tax Due £468.00
Class 1A NIC £322.92
   
Corporate tax position p/annum
Tax saving Year 1 (exlc. running costs) £4,940.00
Tax saving Year 2 and onwards £2,026.46
   
Deposit on purchase £5,000.00
5 Year HP - Monthly payment £385.00

 

Last modified on

News Calendar

Loading ...

News Categories

Tax (34)
PAYE (2)
Economy (9)
VAT (9)
LBW News (9)
Accounting (19)
Payroll (11)
Industry (3)
Savings (2)
Pensions (2)
Landlords (1)
Marketing (1)