Why Do So Many People Drive Teslas? 100% FYA and Salary Sacrifice Explained
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- Опубликовано: 2 июн 2024
- In this video, I talk about why so many more people are now driving a Tesla, and two tax breaks that are available to you if you are looking for a new car. We talk about the tax write off (First Year Allowance) available for the Tesla and other electric Vehicles, and salary sacrifice arrangements. I also discuss the Benefit in Kind rules.
TIMESTAMPS:
00:00 - Intro
00:34 - Salary Sacrifice
03:54 - Tax write off
06:41 - Other factors
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This content, and the ideas presented in it, are for education and entertainment purposes only. Kiran does not provide tax or investment advice. The information presented does not consider the financial circumstances of any investor, and therefore may not be suitable for all investors.
Although Kiran is an Accountant, no Accountant-Client relationship is established with the viewer in any way.
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Or you could pay £5k for a used Japanese car, drive it for 5 years, and still have most of your equity in it when you sell it. Rinse and repeat.
Must be nice to simply be an employee, demanding holiday pay, sick pay, annual pay rises, pension contributions and not have to worry about running a business..
@@rlc2978 it probably is. One way to get back at the system.
Typical stingy
Buying a used car, doesn't work for companies which pay there full tax liabilty, because funds used will be taxed paid funds and than the fuel cost comes to £4k per year plus maintenance, plus road tax etc. Better to to lease £500 per month and the tax saving plus fuel saving and other maintenence savings makes the the vehicle cost exactly the same but you get to drive an 80k car with warranty. Win win
1000 a year ain't much of a tax right off
The high depreciation rate of luxury EVs will void this “discount” in less than a year
The depreciation is also a tax write off and when you come to sell the car you will pay less tax on the sale of your car. If you're able to prove 100% company use only, you can claim back VAT to.
Great video, Kiran. Thanks!
love this yet another helpful video thank you
Nice video Kiran, good explanation
Thanks for your advice Kiran
Thanks for this concise explainer. Does the tax write apply to all types of businesses, ie. do you have to justify business use?
Amazing video
Hi, can you lease a 2nd Tesla through UK LLP? Thanks
I noticed hedge funds in the uk are LLPs owned by LLCs which I’m then assuming is owned by an offshore LLC can you explain the tax benefits of this from the owners perspective and why they live in the UK still rather than moving all their business to UAE for example
Glad your enjoying your M3
M3P please
The problem is the lease companies bump up the price to make salary sacrifice worth it - but not as good as it could be.
The sacrifice scheme is more efficient than stated the more you earn. If you are on around 100k a year your tax, Ni and pension contributions are substantial,. Your marginal rate at 100k per year is 60%, chuck in NI etc and you are approaching 80%. If you are in a fixed contribution final salary scheme the pension in particular places you at risk of leveraged government supertax. Paying for an ICE vehicle, fuel and insurance out of taxed income where for each pound you take home net you need to earn five is … daft. Salary sacrifice means the Tesla is either cost neutral or saves you money.
Electric vehicles will become liable for vehicle excise duty (VED) £165 for cars costing less than £40k and £355 for above £40k including optional extras on 1 April 2025. The change was announced by Chancellor Jeremy Hunt in the 2023 Autumn Statement, giving motorists two years’ notice to factor it into their household budgets. Wouldn’t be surprised if they scrap most other incentives too
Is that new cars or also cars which were previously VED exempt?
@@yunuspatel780 normally only applies to cars purchased after the date for VED
@@yunuspatel780in this case I think it's retrospective, from the RAC website
Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
The best option is not to buy at all if possible.
Except the markup the lease companies charge negate the savings
Awesome video.. kkkk kiran will reach 1m subs.
Does the 100% first year allowances apply to individuals or only business owners?
Businesses claim write down allowances. Personal tax accounts don't include the writing down of a personal assets..
@@rlc2978 Thanks
hello, so if you change an employer, would there any chance it would be carried over to the new employer?
Depends on the agreement, but normally you need to return it if you are leaving.
@@aturan-fo1qt If you have some a ceartin amount of money in your ltd company can you take it out to close the company and pay capital gains tax instead of income tax or will HMRC not let you
As a business owner what happens when I sell the car?
Hi good video thanks
What about self employed ev buyers
This is what I want to know also
I am sole trader and was able to deduct the % business use from my gross profits
This is good news for businesses and those able to access this. But the general tax payer is picking the tab for this privilege. Same with a lot of these green deals. Good explanation keep up the good work.
As for Tesla good luck with insurance and repairs.
20k business miles a year for a long range model 3 is £1500 fully comp
Repairs are paid for under the scheme, so is insurance. It's all in.
I wish I earned £3000 a month. We are living in different worlds if you think £5000 gross is a normal salary in the UK. Maybe for bankers and doctors but not for teachers and junior accountants.
Simple. It is among the most efficient evs available and therefore very cheap to own.
its the insurance that scares me
I’m 45 and I drive a Tesla model 3 long range.
0-60 in 4.2s and I pay £850 per year.
@@chazproukur 45 is the point. I’m below 30
@@nyasha3416
Then yes, you should be looking at cheaper cars and use the money saved to invest.
All battery cars are 100%tax right off
If I see a Tesla I think - "Keeping Up With The Jones" and.. boring! :)
If I see Rob Stone I think , must be on the dole , bless him..
This is why corporate drones stay poor and need to keep working
Your making “like for like” comparisons…while the reality is companies like SG Fleet bump up the rental costs pre salary sacrifice - for example an additional £350 on a model Y, which means you lose any tax benefit - making the scheme pointless.
This is what the majority of deals look like and you are better off shopping around and looking closely at the contract.
This is true. I just took delivery of a Model y with SG Fleet. The price is bumped up but the monthly cost is still cheaper. I went to Tesla and they said they couldn’t compete. I had no deposit to pay and it includes insurance, tyres and any maintenance. Tesla couldn’t match that at all. Cost me £500 a month for a performance version, which is only a fraction more than my monthly fuel bill.
As ever in life
The rich get richer.
By a used car. That's more efficient
Hi Kiran I like the way you explain things and you have made me money in the past when I invested in Nvidia. Can you do a video which helps people in my situation how to work toward becoming a millionaire within 15-20 years if currently in early 30's earning average salary 35k, has 100k in savings. My goal is to make my next 100k quicker than 7 years and I have 1 investment property. Could you maybe explain what people mean why first 100k is hardest
Get some discount of some poo.... Like the tax break on pension contributions, the working man never wins....
Im planning to open my own business. And i have found my account now.thsnk you for your advice
Buy Nvidia and earn some side hustle tax free money on ISA
Lol electric ? I prefer a gas guzzling BMW M3. Enjoy the cars we have, we are all going to be pushed to electric in the next decade, soon to be nothing but a relic in a museum.
You haven't driven one have you? Anyway, forget your new BMW and go get a horse and cart so they don't become relics
What a beautiful woman
I had to rewatch this a few times as her beauty is distracting.
Can you please tell us how to avoid inheritance taxes.
Don’t die?
Trust funds. But a tax specialist will set them up. It will cost alot but we'll worth it
Buy a hotel