ACCOUNTANT EXPLAINS: How to Buy a Tesla Half Price
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- Опубликовано: 30 май 2024
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In this video, we cover how you can get an electric car for nearly half the price.
⌚TIMESTAMPS:
00:00 - Intro
00:38 - How the "discount"/savings work
06:32 - Other Financial factors to consider
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DISCLAIMERS & DISCLOSURES
This content is for education and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
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What's your number?
what about fuel / hybrid plug in
Loving your growth! Disovered you with 10k subs and you've changed the game so quickly. Fantastic, easy to digest content and delivered well :)
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.
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?
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?
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.
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.
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
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.
Very well explained in detailed and interesting, I love the buying part of buying a car under a company so the tax is deductible.
I bought a Tesla from the TSLA gains over last 5 years. 100% off the buy price. 6:43 awesome 🙂
Great clear videos. No waffle or click bait. Very eloquent and it has be said… mesmerising good looks. Wow.
I've watched a lot of your videos and I've been following you for a long time. Your videos are great
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 😊
Thanks Nischa, this is what I've been looking for. Can you kindly suggest your opinio on the following scenario:
1) Say I'm employed by org X (different owner).
2) And, I also have a separete company Y that I set up.
3) I invested in my company Y from the salary I got paid from X.
4) I then buy an electric car under the company named Y.
Will the car be VAT exempt?
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?
Great video! Can you please create a video about buying a house personally vs buying a house through your company?
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
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.
Thanks for this, very informative. Two questions. If I buy through my limited Co on an interest free deal over 7 years £10,700 deposit plus £428 pm is each payment tax deductible? Also, I’m about to register for VAT. For me to claim the VAT do I need to be registered before I make the purchase. Thanks in advance & best wishes, Anthony
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.
Great video... unfortunately I'm an employee of a company and have no side hustle that I can use to shield an EV expense. ☹️
Nailed it again...Great advice, Thank you🤩
Thank you for yet another great content, I'm wondering if this applies to any Fully Elec cars or just Tesla?
any!!
I appreciate the way you explained in a simplified manner with a practical written example, great video Nischa, loving the content!
Hi Nischa, great video do you happen to know any great calculators comparing this discounted tesla purchase TCO over 5 to 7 years versus a used or new petrol equivalent? Cheers, J
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?
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
Very much love your channel and videos. Presentation, content and all is flawless! Grateful to have discovered you on RUclips. I just purchased a new Tesla, picked it up last week. I'm across the pond from you in the States. Months back, when I was preparing to order, I inquired with my accountant about whether there were advantages to possibly purchasing via my LLC. He explained that it wasn't a good option or...not as easy and advantageous as it may seem to be. Not sure why. lol. Anyway, I've subscribed to your channel. Looking forward to your content.
Subscribed, liked, and listened
Great mindset and overall knowledge!
Cheers from Kazakhstan 🇰🇿 🎉❤
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.
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
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.
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!!! 💚💚💚💚💚💚💚💚💚💚
Probably one of the best YT accounts - so informative. Thank you, again
Is it weird I'm learning more from Nischa than my actual account I pay for. Awesome video.
As always, very valuable ideas and information that touched our lives Thank you
Excellent information. Thank you for sharing. My daughter is considering an electric car and I'm forwarding your video to her.
Many thanks Nischa for another great presentation.
Please did you register your company as sole trader or private Ltd company?
I love what you are talking about. I would love to learn more from you about finances period.
Hey Nischa thanks for this amazing vid.
Question: does this still apply if if you purchase an electric car on pcp or finance?
Great vid - Are the tax savings on the car/insurance on car still applicable if the car is USED electric as opposed to NEW?
No
@@peterletts194 Yes, they are, a business buying a vehicle is still getting tax relief second hand or not.
Awesome video keep the great work up 😃👍
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
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
Literally my favourite channel. You absolutely need to start a business mastermind group - paid subscription!
Always looking forward to Your video all the way from New York ❤
Thank you. Sending love to NY!
any tips on how can you take advantage of scenario #2 if you purchased car under scenario #1 but opened a business a few weeks later in 2023 located in California?Can you transfer ?
EVs depreciation is just insane. For 2 years in the market, Shitsla get nearly 20k from its price.
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..
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.
Can you use the same method to by a used electric car, or does it have to be new?
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.
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
Is this only applicable to brand new EVs? Could you use this method on a second hand EV?
Can you still get the tax savings if your compnay income is like $3000 or much less than the car? Does it count as business lost so then you mitigate your salary?
This is really interesting. Thank you. May I ask please, the benefit in kind hit, is that payable per year or just in the year that the car is bought? Many thanks.
It’s every year :)
@@nischa
Can the car be written off after a year?
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 ?
How would this be different say if I leased the car having monthly payments? Does the whole monthly payment become a tax deductable cost?
yes and also 50% of the VAT back
Great information! Thanks.
Love your videos nischa!
I like how you use the example , it makes people understand! As a student studying accounting professor should give more examples related like this , when it comes to not paying tax
Thank you for the video!!! We learn a lot with you! Thank you!
Hi Nischa, Such a excellent video. Just one query can we claim VAT which we used pay?
Does this only apply in the UK? Can this be done if someone is in Canada?
Great video thank you!
Thank you :)
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?
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.
Good video. Not a big deal, but just to mention, there’s an issue with the audio/lag at around 1:18 in case it wasn’t known.
Fantastic advice as usual
Thanks Nischa - great info!
This is needed in this environment.
Would it still work if your paying via ltd company, but via PCP / HP / Loan ? Or does it need to be all cash ?
Except leasing, It doesn’t matter how you pay for it.
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 for this video - lots of useful info within. Does the tax break apply to sole traders too or just to limited companies?
ltd companies
This is exactly what I did. Bought a VW ID.3 via my own company.
Does this work in the US as well?
Just as I opened this video, the morning news began a story about a class action lawsuit against Tesla for privacy concerns.
thank you and btw your hair looks amazing
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
Thanks for this. Would the cost also be tax deductible for a rental business in personal name and not in a limited company?
Read Section 179.
Great video thanks. Does the Tesla have to be new or could it be bought 2nd hand and still give the same tax benefits?
Basically new
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.
Very informative video 👍
what happens when you sell the Tesla? Does that then become income for the company and therefore subject to corporation tax?
I agree with the second tips because I do most of my travelling content creating as an expenses. This gives me more opportunities to create content and save money. Thanks Nischa
Is this also possible with an LLC or Sole Proprietary business? (asking as someone in the US)
Thank you for these wonderful nuggets. Are they applicable in the states?
can I use a property investment company i use to manage my by to lets?
Thank you for explaining it so clearly. I am sure I read somewhere the chancellor will impose road tax for electric cars in 2025, but not sure. I thought you are the best person to ask as Dr Google’s advice can be misleading!
I read that somewhere too! Based on the current state of the economy I wouldn’t be surprised if they did…
Is this in England only? Thanks.
Great Video, does this applies to limited company? I am a consultant doctor, can I buy tesla on limited company for locum work?
Could you clarify how buying a car for personal purposes can be written as a business expense?
My head is spinning now. Anyway thanks for advertising Tesla. I appreciate it as a Share Holder.
I have a salary from my day job, but do a self assessment on my side hustle. Would this be tax deductible on my self assessment?
What would be my best option, PCP or lease? Cash buy isn’t an option.
Is anyone aware if the benefit in kind treatment applies to Canadian company cars too?
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
Do you any colleagues that are familiar with Canadian taxation laws toward electric vehicles or if you have a link to Canadian taxation for electric vehicles?
Keep up the good work, this was very helpful as I am just about to buy a Tesla :-)
What If I don’t have a company and work on a self employed basis? Will I be able to get this discount too?
How long do you have to be trading as a company to get this benefit?
Does not matter how long you been trading…