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She was being conservative and I 100% agree with her. She knows what she is talking about because you will end up saving more than half off a Tesla. With an EV grant and rebate I got for buying a 2021 model Y, I am practically paying only 3-4K out of pocket for a 58k car. You are most likely one of those people that will penny pinch hiring a CPA if they charged you $2500 to file your taxes.
Hi Nischa, I just found your channel and love it. I have 2 Ltd companies, one investment with 4 properties we rent out and a building company. Just bought a Tesla last year, and i was really surprised how much our CT was reduced. Needless to say, my business partner has just bought a new ev through our building company as the savings are so good. Anyway, I have a backlog of your videos to get through! Keep up the good work.
Can you do a video on buying a new EV vs a second hand one? what the tax implications are? I find this subject so very complicated. Also how leasing/ buying out right effects how much you can claim?
Great video Nischa. Something to bear in mind if one considers buying a USED EV, is that it won't qualify for the enhanced capital allowance. This means you can't deduct 100% of the vehicle's purchase price against your pre-tax profits. Instead, you can only claim an annual main rate allowance of 18% of the car's value. Another factor to consider is that for ALL EV's, 2% of the car’s value is BiK taxable this year BUT there will be a 1% rise, each year, for the next three years.
Brilliant! In the US, lease was the only way for me to qualify for a Taycan, but with some haggling, got $14,500 off of the base. BTW you have a v non accountant vibe which really works for this channel.
Do you foresee changes in the tax deductible schemes? Been trying to do so here, but I realise that it still doesn't change the fact that you still need to spend ~$50k to buy the car doesn't it? It seems like for both scenarios individual and company regardless, the method only benefit someone with a good cashflow i.e. not using loan to buy the car.
Thank you for making great content! Very informative content presented in such a nice way. Not the "overhype everything" format you see nowadays on youtube 95% of the time.
Just to be clear the expense you can claim- wouldn’t this be limited to the annual depreciation expense you can claim as the car would need to be capitalized as the perceived tax benefit extends beyond one year and hence you can’t deduct the full $50K in one year
There is another option in UK but relies on your employer to provide it where you buy an electric car through salary sacrifice similar to pension or bike to work schemes. Only for electric cars which then allows you pay lease payments from your gross pay. Saving 40% for a higher rate tax payer. Great video as always 🙂 Same with pension employer benefits as doesn't pay employers NI on the sacrificed salary.
That sounds great but don’t forget to mention what you normally do about new car and how they loose 10% as soon as you drive them away from the showroom, then a father 30% in the next 3 years. It’s still obviously worth doing this way if it’s an electric car you need/want.
what i’ve noticed is that electric car schemes through an employer seems like a saving but the costs of the same cars from the leasing company are much higher than on a regular purchase lease scheme which negates the pre tax purchase advantage
Thank you for this. I have a limited company, but it only profits approx 40k a year. Let’s say I finance the car or take out a business loan, and the payments are £500 a month. Is this £500 fully tax deductible? So say my corps tax is 6k for the year - I won’t get a tax bill? Thanks 😊
Really informative on corporations vs individual. I assume if the company bought the Tesla over 3 years or 4 years , then they would have more income after tax left
I drive a Toyota Taris, been told by many in family to 'upgrade' however taking into account the costs involved in running the car and that I also work from home the majority of the time I don't see the need to change. Especially when its been reliable for so long.
Toyota owner here as well. you’re going to pay more not only for the car but EV owners pay more in registration fees so all in all you’re not gonna save all that much anyway. That’s the part that doesn’t get talked about. You get a little EV incentive and then they slap you with the registration fees later making up for it yearly
I sold my BMW and bought a Tesla - overall I cut maintenance costs 5x Than I sold my Tesla and bought Fx income instruments - overall I increased the income from Fx (4x earn more than I used to spend on the car) To sum up - sell passive assets and buy income-producing assets
@@bigdarshan Buy one, you'll soon find out how much fun they are to own. We have two, an M3 and an MY. But I can't wait for when the Roadster comes out. Now that is one quick car
Slightly incorrect, As of 2025 there will be VED of £165 on all EVs with the addition of a Premium tax of £360 for the first 5 years on new vehicles costing more than £40k, so all Teslas.
Lol. Loved the eye roll / sigh. The charging time wasted argument always makes me laugh. Scrolling through instagram on your couch for 30 minutes or in your car while it's charging. What's the difference?😂
I did push ups while waiting for my Tesla to charge . I felt like waiting for the charge time , was time wasted. Now I listen to audible or do push-ups.
u can do that in the UK but in America its way better to write off the miles year after year after year til you dont have the car no more rather than a one time write off.
I got my EV salary sacrifice which is pretty much what is described here. Gorss=£800pm, then net £500 but I also save by reducing my gross by another £200. Then I save £500 fuel a month where the electricity costs me approx £20 but then factor in my electricity bill had reduced due to the EV tarriff it costs £0 to run. No tax or consumables to buy and a bit of BIK to pay. All toll I am £200 up each month. I also sold our two ICE cars and pocketed £20k! Was a no brainer for me.
I was told that you need to have a business for 2 years before you can qualify, is that true? Is there an amount of time you have to have had a business before you can gain from the benefits mentioned in this video?
I purchased a New Tesla Model Y 3 months ago. I utilized the EV federal and State credits towards the car ($11k) and I was lucky enough to qualify for the incredible .99% financing rate from Tesla. The one thing I did not do Is buy it under my company.
Hello Nischa, thank you for your video. Trading 212 is registered in Cyprus: does it mean it is not regulated by the FCA? Are customer deposits FSCS protected? Trading 212 does not charge commission so how does it stay in business?
Yes as Chris mentions, they make money on the spread. For those who doesn't know what that is, it's the price difference between the price they sell to you and buy back from you. Every broker have spreads, but these commission free brokers have wider spreads to cover their costs. That's a bad thing if you make high value trades, as the spread will eat into your profit. It is a good thing if you make lots of small trades, as you save a lot on commissions.
This is exactly what I did. And of courne on going cots of the car can then be paid via the company too rather than through personal money. It's such a no brainer and when you run the maths it works out so cheap over 5 years. I sold my audi a5 to do this and now I dont have the ongoing costs associated with my old car.
Thank you. What about purchasing used electric cars through the company? I know its not 100% tax deductible but do you think its still worth it vs personal purchase?
I saw the vote on the title of this vid. I chose Tesla. Reason being is that Tesla is a buzzword with a lot of hype around it, especially on social platforms. In my humble opinion it’s a better video title to attract views and trigger the algorithm. Then in your content in the video you could’ve just said this applies to Tesla and all other electric cars 😊
I'm not happy with my accountant here in Florida, so I'm moving to where ever you live and hire you as my accountant. I didn't really hear anything you said, but I'm sure it was accurate.
What if you haven’t made any money from your business or as a sole trader yet but you have registered a limited company can you still do tax write off with your .75000£ salary as an employee from your 9-5?
I am not sure, if it still exists but that was a loophole that many BBC staff were forced to use by the BBC whereas(I can not remember the name of the scheme) you set up your own company and then instead of you working for your boss your company is hired and then your company hires you to do the job. That way officially it is your company that works for your boss doing the same job you normally do for the same money. The difference being that you would then get to take a certain amount of money before getting taxed and then would the pay corporation tax and that rate would be less than the rate you would normally have to pay. I can not remember all the details but I am sure Nischa could inform you. I think that something tells me that route was closed down because I think Gary Lineker got caught up in that a year or so ago and that is what alerted me to what scheme was etc.
This is exactly where it falls down. If I was making my 75k at work and then making 75 on a side hustle then yeah it would already be obvious to me to buy my car through my business.
Hi Nischa, Thank you for this video. What if your company is registered etc but new and so you have not yet started generating profit (still using part of your salary to build your business)? Can you still buy an electric car under your business and personally make the monthly payments for it? Also, because it is under the company name am I right to assume that it will not go against me and my credit score as personal debt?
Just came across your RUclips channel today and am impressed with the ease at which you explain what many find baffling. I’d hire you tomorrow to do my taxes if I thought you would . Can I ask you a somewhat left field question though and I won’t take any answer as qualified just that of an opinion… So a person works for a company as a taxi driver, driving a company owned Tesla on a PAYE basis. There is no charge for the car and you’re even given an allowance to use personally up to 70 miles from your home address in any single journey. However that said you do as the driver / employee have the responsibility to charge the car ( at home or wherever a charger can be sourced) and the cost of this is the drivers. Now I appreciate the cost is 100% tax deductible but is it legal to ask a company employee to pay a company expense ? Yes a contract would have been signed I’m sure but I still think it’s a tad shady , do you agree ?
Having an electric van I get to meet many people at charging stations and there’s one resounding opinion; Unless you pootle about around town, an electric vehicle is completely destructive to your time both at work and life
Hey Nischa, just wanted to say I’ve recently come across your videos and they are incredible!! You explain things really well and make it really easy to understand. Keep up the awesome videos and keep doing what your doing! All the best. Vishal
Manifesting isn’t about not working. It’s about believing that Gd or the Universe actually wants good things for each of us. It gives us the courage to work hard believing that we can achieve the results. It’s all about mindset but doesn’t mean you expect to sit on your couch eating bon bons and get rewarded for it
Thank You, Nischa, for sharing this very valuable information which is very useful and helpful to know on considering the tax-saving benefits that will accrue on chosing whether to purchase an electric vehicle over a petrol or deisel engine vehicle for personal or company use!! I totally enjoyed your video presentation. All greatly appreciated!!! 💚💚💚💚💚💚💚💚💚💚
Not entirely true. In the first case you are free to use the leftover money for your personal needs and in the second the money stays in the company and you need to either pay out a dividend or salary to yourself, which will be taxes as well.
Thanks for great information. One question I have relates to selling an electric vehicle bought outright through a Ltd company. I understand that the car is taxed on the price of any future sale, but what if the car was part exchanged in the future - is the tax liability based on the sale value of the car at that time or the difference / profit made by the company from the part exchange?
On your balance sheet, you would write the PX price of the old car and separately the purchase price of the new car. So that it aligns with the assets held by the company.
I just paid off my car 🚗 yay - and nope.. not planning to buy any new car, Tesla or otherwise, although I could afford them. My next new car will have to be electric, anyway. Much love 💕 from Canada 🇨🇦
Thanks Nischa, I will claim on my car now too. Lucky my financial year has not yet ended. Reading the comments has answered lot of my Questions.. Thanks all..
Love your content , having lived with a model y for 6 months , I got rid at the first opportunity I'd steer clear . The infrastructure isn't ready In the UK, you get range anxiety, try organising multiple long trips . And how the ipad system is legal beggars belief. They really suck. I'd be lucky to get 260 miles out of mine not the 300+ quoted, oh and charging is getting expensive
Whats considered a new Electric Car? Can it be a second hand model from last year and bought through a company? Or does it need to be from a dealership/factory?
Great advice. I did option #2 organically. So often, people ask how we afford things, and the most likely and prudent answer is to buy smart. I rent my car to offset the cost, and not only do I make a profit, but my car is also paid off. It literally behooves me to have my Tesla and use it as a side hustle.
In a couple of years you won't be able to find a charging station without a huge queue if you don't have the ability to charge at home. There are already long queues at charging stations at certain times.
Long before that eventuality, all gas stations will have installed chargers, as EVs gain market share. And shortly afterward will come swappable batteries, eliminating the need to plug in to recharge.
@@ArmageddonIsHere I want to see you swapping a battery of a Tesla on your own. How much does it weigh? LOL it is not the same as swapping a small 12V battery of an ordinary car.
Really helpful video , thank you. Q - Does this only work with buying a new car through the company or can a second hand electric car also work this way?
This is a very clear and informative video and I used this structure to purchase an EV (ID3) through my company. The disgraceful issue in the UK is that a new Long Range model Y costs £53,000 whereas the same car costs just £33,850 in the USA (after the $7,500 federal incentive). So it costs nearly £20,000 more for the same EV in the UK primarily because of markups added by our government. Our government need to remove VAT and import duty from EVs as well as offering additional incentives - few people are going to spend £53K on a model Y when they know that people across the pond are paying less than £34K for the same car!!
Good to know UK laws. It could be nice if you mention at the beggining this is for UK, not US or other countries have the se rules. For example US requires fringe benefit to be reported as w2 income witch is quite high. There is no exception for EVs in the US
Awesome, this is what I'll be doing for my next car. Unfortunately, I did it the wrong way, a large deposit to reduce the monthly payments on a PCP after COVID. Having owned cars fully previously and sold mine, I figured that we wouldn't be driving at all or much during COVID. So I sorned off the previous car and had it sat on the driveway, full tank of fuel. Sold it a year after. Once out of COVID and things looked promising with movement, I decided to purchase my first EV car. It was more of an impulse buy. I wonder if there's a way to set up a company and shift the finance from personal to benefit through the company instead or does this have to be done at the time of purchase? 🤔Thanks again for being clear and concise Nischa. Looking forward to going through your finance tracker and mini course.
Good video, please note you still have to pay the congestion charge as it’s not emissions related but not have to pay the ULEZ in London . Also like you said it does need to be justified so if you already drive a van for work for example then you would find it difficult to justify a car as well.
@@zaynabbaig8147 according to the government site you do: Text taken from site when searching pure electric car details: This vehicle meets the ULEZ emissions standards You do not need to pay a daily ULEZ charge to drive in the zone, and are helping to improve air quality across London. However, if you see the Congestion Charge displayed below, you will need to pay that daily charge to drive in central London.
@@ano1004 you could be right but the government site says otherwise when I enter my model 3 registration. “You do not need to pay a daily ULEZ charge to drive in the zone, and are helping to improve air quality across London. However, if you see the Congestion Charge displayed below, you will need to pay that daily charge to drive in central London. Congestion Charge £15.00 to £17.50 a day
Here is a question, used Tesla model 3 prices are really good at the moment, long range sits at £50k new, £35k for good used long range (21) is there any benefits buying used electric through company or in this case is it better to take out a dividend.
Salary sacrifice for employees of companies that offer this can also make large savings. Many include insurance and servicing. Not quite a 50% discount but notvfar off it!
Informative but Option 1 paying in after tax dollars appears to assume you live at home and have the £52K left over to pay for the car. What about the exorbitant cost of paying to live: accommodation, food and other taxes and expenses. I’m being picky because I do realize one would be lucky to have enough personal income left over to pay for such vehicle in anything less than 5-7 years.
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What's your number?
what about fuel / hybrid plug in
The title is misleading. The tax deductible and benefit in kind is applicable only to company cars
How is it misleading? It says how to, not how every Tesla owner does it
She should have put in title buy cheap or free car as a business owner 🤷🏻♂️
She was being conservative and I 100% agree with her. She knows what she is talking about because you will end up saving more than half off a Tesla. With an EV grant and rebate I got for buying a 2021 model Y, I am practically paying only 3-4K out of pocket for a 58k car. You are most likely one of those people that will penny pinch hiring a CPA if they charged you $2500 to file your taxes.
She knows her stuff, thanks
So make up a company. Ne smart. What do you think 95% of “business owners” do?
I bought a Tesla from the TSLA gains over last 5 years. 100% off the buy price. 6:43 awesome 🙂
Hi Nischa, I just found your channel and love it. I have 2 Ltd companies, one investment with 4 properties we rent out and a building company. Just bought a Tesla last year, and i was really surprised how much our CT was reduced. Needless to say, my business partner has just bought a new ev through our building company as the savings are so good. Anyway, I have a backlog of your videos to get through! Keep up the good work.
Can you do a video on buying a new EV vs a second hand one? what the tax implications are? I find this subject so very complicated. Also how leasing/ buying out right effects how much you can claim?
Any findings?
Need to factor in the dividends tax at 8.75% to take out the remaining money from the company which will slightly reduce what is left
Great video Nischa. Something to bear in mind if one considers buying a USED EV, is that it won't qualify for the enhanced capital allowance. This means you can't deduct 100% of the vehicle's purchase price against your pre-tax profits. Instead, you can only claim an annual main rate allowance of 18% of the car's value. Another factor to consider is that for ALL EV's, 2% of the car’s value is BiK taxable this year BUT there will be a 1% rise, each year, for the next three years.
Brilliant! In the US, lease was the only way for me to qualify for a Taycan, but with some haggling, got $14,500 off of the base.
BTW you have a v non accountant vibe which really works for this channel.
Is it weird I'm learning more from Nischa than my actual account I pay for. Awesome video.
Loving your growth! Disovered you with 10k subs and you've changed the game so quickly. Fantastic, easy to digest content and delivered well :)
Great video... unfortunately I'm an employee of a company and have no side hustle that I can use to shield an EV expense. ☹️
Do you foresee changes in the tax deductible schemes?
Been trying to do so here, but I realise that it still doesn't change the fact that you still need to spend ~$50k to buy the car doesn't it? It seems like for both scenarios individual and company regardless, the method only benefit someone with a good cashflow i.e. not using loan to buy the car.
Thank you for making great content! Very informative content presented in such a nice way. Not the "overhype everything" format you see nowadays on youtube 95% of the time.
Very well explained in detailed and interesting, I love the buying part of buying a car under a company so the tax is deductible.
Just to be clear the expense you can claim- wouldn’t this be limited to the annual depreciation expense you can claim as the car would need to be capitalized as the perceived tax benefit extends beyond one year and hence you can’t deduct the full $50K in one year
There is another option in UK but relies on your employer to provide it where you buy an electric car through salary sacrifice similar to pension or bike to work schemes. Only for electric cars which then allows you pay lease payments from your gross pay. Saving 40% for a higher rate tax payer. Great video as always 🙂 Same with pension employer benefits as doesn't pay employers NI on the sacrificed salary.
Very interesting, I didn't know about it.
That sounds great but don’t forget to mention what you normally do about new car and how they loose 10% as soon as you drive them away from the showroom, then a father 30% in the next 3 years. It’s still obviously worth doing this way if it’s an electric car you need/want.
what i’ve noticed is that electric car schemes through an employer seems like a saving but the costs of the same cars from the leasing company are much higher than on a regular purchase lease scheme which negates the pre tax purchase advantage
Thank you for this. I have a limited company, but it only profits approx 40k a year. Let’s say I finance the car or take out a business loan, and the payments are £500 a month. Is this £500 fully tax deductible? So say my corps tax is 6k for the year - I won’t get a tax bill? Thanks 😊
Great video! Can you please create a video about buying a house personally vs buying a house through your company?
My next car is the new Tesla Model 3
Really informative on corporations vs individual.
I assume if the company bought the Tesla over 3 years or 4 years , then they would have more income after tax left
I drive a Toyota Taris, been told by many in family to 'upgrade' however taking into account the costs involved in running the car and that I also work from home the majority of the time I don't see the need to change. Especially when its been reliable for so long.
Toyota owner here as well. you’re going to pay more not only for the car but EV owners pay more in registration fees so all in all you’re not gonna save all that much anyway. That’s the part that doesn’t get talked about. You get a little EV incentive and then they slap you with the registration fees later making up for it yearly
I sold my BMW and bought a Tesla - overall I cut maintenance costs 5x
Than I sold my Tesla and bought Fx income instruments - overall I increased the income from Fx (4x earn more than I used to spend on the car)
To sum up - sell passive assets and buy income-producing assets
Excellent and informative video. It certainly explains, in part, the fact that Tesla's are almost common place where I live.
They are boring as hell though😢
@@bigdarshan Buy one, you'll soon find out how much fun they are to own. We have two, an M3 and an MY. But I can't wait for when the Roadster comes out. Now that is one quick car
@@bigdarshan I have a Model 3 Performance, 500 hp at the wheels and handles like it's on rails is hardly boring mate. Each to their own!
I love everything about Tesla, except their looks. Wish they would make them prettier.
Slightly incorrect, As of 2025 there will be VED of £165 on all EVs with the addition of a Premium tax of £360 for the first 5 years on new vehicles costing more than £40k, so all Teslas.
Lol. Loved the eye roll / sigh. The charging time wasted argument always makes me laugh. Scrolling through instagram on your couch for 30 minutes or in your car while it's charging. What's the difference?😂
Haha I couldn’t resist! 😂
I did push ups while waiting for my Tesla to charge . I felt like waiting for the charge time , was time wasted. Now I listen to audible or do push-ups.
So don’t waste time scrolling on Instagram…the time wasted charging is ridiculous
Sounds like you don’t have time management
How would you model this under a lease contract (can do different options) the key is how would the company be treating the cost of the monthly cost?
Great clear videos. No waffle or click bait. Very eloquent and it has be said… mesmerising good looks. Wow.
u can do that in the UK but in America its way better to write off the miles year after year after year til you dont have the car no more rather than a one time write off.
I got my EV salary sacrifice which is pretty much what is described here. Gorss=£800pm, then net £500 but I also save by reducing my gross by another £200. Then I save £500 fuel a month where the electricity costs me approx £20 but then factor in my electricity bill had reduced due to the EV tarriff it costs £0 to run. No tax or consumables to buy and a bit of BIK to pay. All toll I am £200 up each month. I also sold our two ICE cars and pocketed £20k! Was a no brainer for me.
This is exactly what I did. Bought a VW ID.3 via my own company.
Does this work in the US as well?
I appreciate the way you explained in a simplified manner with a practical written example, great video Nischa, loving the content!
I was told that you need to have a business for 2 years before you can qualify, is that true?
Is there an amount of time you have to have had a business before you can gain from the benefits mentioned in this video?
I purchased a New Tesla Model Y 3 months ago. I utilized the EV federal and State credits towards the car ($11k) and I was lucky enough to qualify for the incredible .99% financing rate from Tesla. The one thing I did not do Is buy it under my company.
Hello Nischa, thank you for your video. Trading 212 is registered in Cyprus: does it mean it is not regulated by the FCA? Are customer deposits FSCS protected? Trading 212 does not charge commission so how does it stay in business?
cHECK OUT RUclipsrs Damien Talks Money - he explains about the UK arm of 212 that is regulated and that is what you will be accessings
There is an issue with T212 that’s quite well documented online - Google it. Most of the funds are actually held in Bulgaria so no FSCS protection.
@@ChrisLee-yr7tz Thank you very much for your reply
Yes as Chris mentions, they make money on the spread. For those who doesn't know what that is, it's the price difference between the price they sell to you and buy back from you.
Every broker have spreads, but these commission free brokers have wider spreads to cover their costs. That's a bad thing if you make high value trades, as the spread will eat into your profit. It is a good thing if you make lots of small trades, as you save a lot on commissions.
Forgot to say as a perk if you allow them to charge at the office for free that is not a bik as electric is not considered as fuel
This is exactly what I did. And of courne on going cots of the car can then be paid via the company too rather than through personal money. It's such a no brainer and when you run the maths it works out so cheap over 5 years. I sold my audi a5 to do this and now I dont have the ongoing costs associated with my old car.
The 1000 supercharge points are a nice touch. :)
The best type of advertisement is when it's beneficial to all parties :)
Thank you. What about purchasing used electric cars through the company? I know its not 100% tax deductible but do you think its still worth it vs personal purchase?
Did you get answer
@@akhere07 Nope
@okhan21 which country are you from..
Its upto 61000+tax for electric or phev cars and 36000+tax for gasoline cars in Canada.
Another good explanation from Nischa, keep going.❤
Thank you
Buy with a company
I saw the vote on the title of this vid. I chose Tesla. Reason being is that Tesla is a buzzword with a lot of hype around it, especially on social platforms. In my humble opinion it’s a better video title to attract views and trigger the algorithm. Then in your content in the video you could’ve just said this applies to Tesla and all other electric cars 😊
I'm not happy with my accountant here in Florida, so I'm moving to where ever you live and hire you as my accountant. I didn't really hear anything you said, but I'm sure it was accurate.
What if you haven’t made any money from your business or as a sole trader yet but you have registered a limited company can you still do tax write off with your .75000£ salary as an employee from your 9-5?
I am not sure, if it still exists but that was a loophole that many BBC staff were forced to use by the BBC whereas(I can not remember the name of the scheme) you set up your own company and then instead of you working for your boss your company is hired and then your company hires you to do the job.
That way officially it is your company that works for your boss doing the same job you normally do for the same money. The difference being that you would then get to take a certain amount of money before getting taxed and then would the pay corporation tax and that rate would be less than the rate you would normally have to pay.
I can not remember all the details but I am sure Nischa could inform you.
I think that something tells me that route was closed down because I think Gary Lineker got caught up in that a year or so ago and that is what alerted me to what scheme was etc.
No
Unless your self-employed / company
This is exactly where it falls down. If I was making my 75k at work and then making 75 on a side hustle then yeah it would already be obvious to me to buy my car through my business.
Hi Nischa,
Thank you for this video. What if your company is registered etc but new and so you have not yet started generating profit (still using part of your salary to build your business)? Can you still buy an electric car under your business and personally make the monthly payments for it?
Also, because it is under the company name am I right to assume that it will not go against me and my credit score as personal debt?
One problem with this is will you get a car finance under your company name because there is no income under its name yet?
Where do you go for a hair cut? Who is your hair stylist?? your hair is amazing
What about leasing It via the business, instead of outright buying?
Just came across your RUclips channel today and am impressed with the ease at which you explain what many find baffling. I’d hire you tomorrow to do my taxes if I thought you would .
Can I ask you a somewhat left field question though and I won’t take any answer as qualified just that of an opinion…
So a person works for a company as a taxi driver, driving a company owned Tesla on a PAYE basis. There is no charge for the car and you’re even given an allowance to use personally up to 70 miles from your home address in any single journey. However that said you do as the driver / employee have the responsibility to charge the car ( at home or wherever a charger can be sourced) and the cost of this is the drivers. Now I appreciate the cost is 100% tax deductible but is it legal to ask a company employee to pay a company expense ? Yes a contract would have been signed I’m sure but I still think it’s a tad shady , do you agree ?
Having an electric van I get to meet many people at charging stations and there’s one resounding opinion;
Unless you pootle about around town, an electric vehicle is completely destructive to your time both at work and life
never use a charging station - charge overnight at home
@@geoff6854 indeed and that confirms my point exactly. I do around 3-400miles/day so only charging at home Isnt feasible.
Literally my favourite channel. You absolutely need to start a business mastermind group - paid subscription!
Hey Nischa, just wanted to say I’ve recently come across your videos and they are incredible!! You explain things really well and make it really easy to understand. Keep up the awesome videos and keep doing what your doing! All the best. Vishal
Manifesting isn’t about not working. It’s about believing that Gd or the Universe actually wants good things for each of us. It gives us the courage to work hard believing that we can achieve the results. It’s all about mindset but doesn’t mean you expect to sit on your couch eating bon bons and get rewarded for it
Thank You, Nischa, for sharing this very valuable information which is very useful and helpful to know on considering the tax-saving benefits that will accrue on chosing whether to purchase an electric vehicle over a petrol or deisel engine vehicle for personal or company use!! I totally enjoyed your video presentation. All greatly appreciated!!! 💚💚💚💚💚💚💚💚💚💚
It really is a no brainer for anyone with a Ltd company
Probably one of the best YT accounts - so informative. Thank you, again
Not entirely true. In the first case you are free to use the leftover money for your personal needs and in the second the money stays in the company and you need to either pay out a dividend or salary to yourself, which will be taxes as well.
Does the car *have* to be only used for company business though? What if its also in use for social, domestic and pleasure at some points?
She has nailed the sponsorship. Genius.
What If I don’t have a company and work on a self employed basis? Will I be able to get this discount too?
The 400£ is a tax bill, how can you add that ?
Thanks for great information. One question I have relates to selling an electric vehicle bought outright through a Ltd company. I understand that the car is taxed on the price of any future sale, but what if the car was part exchanged in the future - is the tax liability based on the sale value of the car at that time or the difference / profit made by the company from the part exchange?
On your balance sheet, you would write the PX price of the old car and separately the purchase price of the new car. So that it aligns with the assets held by the company.
Just as I opened this video, the morning news began a story about a class action lawsuit against Tesla for privacy concerns.
Could you clarify how buying a car for personal purposes can be written as a business expense?
EVs depreciation is just insane. For 2 years in the market, Shitsla get nearly 20k from its price.
I admire your video about how to buy a tesla under a company, but one thought is to discuss that same concept with us in the U.S.
I just paid off my car 🚗 yay - and nope.. not planning to buy any new car, Tesla or otherwise, although I could afford them. My next new car will have to be electric, anyway. Much love 💕 from Canada 🇨🇦
Yes you have.. 61000+tax for electric or phev cars and 36000+tax for gasoline cars in Canada.
Hey Nischa thanks for this amazing vid.
Question: does this still apply if if you purchase an electric car on pcp or finance?
Excellent information. Thank you for sharing. My daughter is considering an electric car and I'm forwarding your video to her.
Thanks Nischa, I will claim on my car now too. Lucky my financial year has not yet ended. Reading the comments has answered lot of my Questions.. Thanks all..
So how do you do this if your income is from another company and you start a side hustle that’s not making any money?
Love your content , having lived with a model y for 6 months , I got rid at the first opportunity I'd steer clear . The infrastructure isn't ready In the UK, you get range anxiety, try organising multiple long trips . And how the ipad system is legal beggars belief. They really suck. I'd be lucky to get 260 miles out of mine not the 300+ quoted, oh and charging is getting expensive
I assume the range given is not taking into account if you have lights on, AC on etc?
Why don't you try using the vehicle the way it was intended to be used. Short commutes within its range and charge it at home.
Nischa, can you share your Trading 212 Pies? I'd be interested I taking a look! Thanks!
Talking about BIK, Can you do a video about the pros and cons on salary sacrifice schemes...would be interesting
Could you please cover ethical ways of investing?
Nailed it again...Great advice, Thank you🤩
Whats considered a new Electric Car? Can it be a second hand model from last year and bought through a company? Or does it need to be from a dealership/factory?
Dealership
Great advice. I did option #2 organically. So often, people ask how we afford things, and the most likely and prudent answer is to buy smart. I rent my car to offset the cost, and not only do I make a profit, but my car is also paid off. It literally behooves me to have my Tesla and use it as a side hustle.
In a couple of years you won't be able to find a charging station without a huge queue if you don't have the ability to charge at home. There are already long queues at charging stations at certain times.
Long before that eventuality, all gas stations will have installed chargers, as EVs gain market share.
And shortly afterward will come swappable batteries, eliminating the need to plug in to recharge.
@@ArmageddonIsHere I want to see you swapping a battery of a Tesla on your own. How much does it weigh? LOL it is not the same as swapping a small 12V battery of an ordinary car.
@@ruinunes8251
Nio already does it, in China. Find out how online. Hint: it doesn't involve a human being lifting out and carrying a battery.
Really helpful video , thank you.
Q - Does this only work with buying a new car through the company or can a second hand electric car also work this way?
I love what you are talking about. I would love to learn more from you about finances period.
Subscribed, liked, and listened
Great mindset and overall knowledge!
Cheers from Kazakhstan 🇰🇿 🎉❤
This specific information just applies for the UK, right?
Does this work if you are self employed?
Hi Nischa, does this apply if you buy the car on finance through the company and not outright?
Thank you for this valuable information.
Does in Australia through a novated lease.
What are your thoughts on renting a Tesla on a business lease rather than purchasing for cash Nischa? 🙏🏻🙏🏻
This is a very clear and informative video and I used this structure to purchase an EV (ID3) through my company. The disgraceful issue in the UK is that a new Long Range model Y costs £53,000 whereas the same car costs just £33,850 in the USA (after the $7,500 federal incentive). So it costs nearly £20,000 more for the same EV in the UK primarily because of markups added by our government. Our government need to remove VAT and import duty from EVs as well as offering additional incentives - few people are going to spend £53K on a model Y when they know that people across the pond are paying less than £34K for the same car!!
Good to know UK laws. It could be nice if you mention at the beggining this is for UK, not US or other countries have the se rules. For example US requires fringe benefit to be reported as w2 income witch is quite high. There is no exception for EVs in the US
Did the Pounds instead of dollars not give it away?
Why? The world does not revolve around the US. You are free to scurry over to the plethora of American vloggers…
Awesome, this is what I'll be doing for my next car. Unfortunately, I did it the wrong way, a large deposit to reduce the monthly payments on a PCP after COVID. Having owned cars fully previously and sold mine, I figured that we wouldn't be driving at all or much during COVID. So I sorned off the previous car and had it sat on the driveway, full tank of fuel. Sold it a year after. Once out of COVID and things looked promising with movement, I decided to purchase my first EV car. It was more of an impulse buy. I wonder if there's a way to set up a company and shift the finance from personal to benefit through the company instead or does this have to be done at the time of purchase? 🤔Thanks again for being clear and concise Nischa. Looking forward to going through your finance tracker and mini course.
Would it make sense to buy a Tesla and use it to drive for Uber? Can you do a video on that idea?
My head is spinning now. Anyway thanks for advertising Tesla. I appreciate it as a Share Holder.
Good video, please note you still have to pay the congestion charge as it’s not emissions related but not have to pay the ULEZ in London . Also like you said it does need to be justified so if you already drive a van for work for example then you would find it difficult to justify a car as well.
You don’t have to pay congestion charge on pure electric cars.
@@zaynabbaig8147 according to the government site you do:
Text taken from site when searching pure electric car details:
This vehicle meets the ULEZ emissions standards
You do not need to pay a daily ULEZ charge to drive in the zone, and are helping to improve air quality across London.
However, if you see the Congestion Charge displayed below, you will need to pay that daily charge to drive in central London.
Wrong not payable on electric cars
@@ano1004 you could be right but the government site says otherwise when I enter my model 3 registration.
“You do not need to pay a daily ULEZ charge to drive in the zone, and are helping to improve air quality across London.
However, if you see the Congestion Charge displayed below, you will need to pay that daily charge to drive in central London.
Congestion Charge
£15.00 to £17.50 a day
@@martingill6996 Have you actually had to make payments? Also do you know what cars are exempt from both ulez and congestion charge
Here is a question, used Tesla model 3 prices are really good at the moment, long range sits at £50k new, £35k for good used long range (21) is there any benefits buying used electric through company or in this case is it better to take out a dividend.
Is there a series like this with a US accountant? What side hustles qualify?
Is this only applicable to brand new EVs? Could you use this method on a second hand EV?
what happens when you sell the Tesla? Does that then become income for the company and therefore subject to corporation tax?
Do you happen to have a similar benefit analysis for the United States?
Is it true that consumer protections don't apply if you buy a car through your business?
Salary sacrifice for employees of companies that offer this can also make large savings. Many include insurance and servicing. Not quite a 50% discount but notvfar off it!
What about the 3rd option open to many people in big private sector companies: salary sacrifice on PAYE?
Informative but Option 1 paying in after tax dollars appears to assume you live at home and have the £52K left over to pay for the car. What about the exorbitant cost of paying to live: accommodation, food and other taxes and expenses. I’m being picky because I do realize one would be lucky to have enough personal income left over to pay for such vehicle in anything less than 5-7 years.