Electric car lease, BIK and Corp tax offset

MattM

Hello!

I’m seeking some guidance to ensure that what I’ve read elsewhere is correct.

I have a LTD company (not VAT registered). I’m looking to lease a fully electric car with a range of over 150 miles. I have read that I can lease this through my LTD company, and claim the lease payments as a business expense thus offsetting my corporation tax burden.

I am then liable for a monthly 2% BIK on my P11D based on the value of the car. Does this decrease when the car deprecates?

Is there anything I’ve missed, any other tax implications that I’ve not thought of?

Thanks!

MonticelliAtCrunch

Apologies for the tardiness Matt, somehow this query slipped through the net. Will try to find a solution for you asap.

MattM

Hi! No need, I did the sensible thing and emailed support. Ashleigh has been wonderful and answered all my questions over about 5 different emails from me.

I feel very informed and secure in making a decision now.

MonticelliAtCrunch

MattM

Excellent news. Pleased that you found a solution.

There is a handy Crunch Knowledge article covering this at; https://www.crunch.co.uk/knowledge-tax/leasing-through-your-limited-company

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