Anyone ordered a 4s recently and a company car question?

911GP

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Hello,
Has anyone ordered a 4s recently? I'm looking to place an order and have been told early April by Porsche Mayfair, March 21st by Hatfield and "mid-March" by Silverstone. Does anyone know of any dealers that can deliver one quicker?
Also, as a company car am I right that it has to be a brand new model in order to claim 100% against corporation tax? And does it have to be brand new for 0% BIK too.
Many thanks
Gitesh
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robborover

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Yes, ordered a 4s on contract hire via business in Oct and delivery just in time (theoretically) to beat Brexit on 31/12. So the timescales you are being quoted are accurate. There are Taycans ex-demo/used on Autotrader but can't see a new build getting here any sooner other than cancelled orders.

Not sure about the used point on BIK and CT calcs tbh, ask the accountant. I am solely able to get this car on the basis of the tax benefits and VAT reclaim etc. Makes it more viable for sure!
 

Bonglim

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My understanding (MUST CHECK WITH AN ACCOUNTANT)
Is that a brand new car is required for the corporation tax, otherwise it is 18% a year.
But you might be able to include ex demonstrators as part of that or cars that essentially counted as 'new'.

Here is a link I looked at when I was contemplating the same thing:
https://www.accountingweb.co.uk/any-answers/demonstration-car-100-fya

I would say that a lot of people have had problems with expected delivery dates, so you might run in to trouble if you factory order and desperately want to get it before the end of the tax year!

I think you are fine with the BIK bit.
 

Tazer

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I have, i'm collecting tomorrow.
Try Porsche Swindon, they are the best experience I have ever had buying a car. Jordan, Joel and Matthew take care of me and I have never ever had a single issue with the service.

It has to be brand new or dealer "new" for the tax break. You get a tax break against the full value of the car but within the taxable amount if that makes sense. I went into it thinking i'd get a 108k tax break but I was brought back down to earth by my account lmao
 

legataycan

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I have, i'm collecting tomorrow.
Try Porsche Swindon, they are the best experience I have ever had buying a car. Jordan, Joel and Matthew take care of me and I have never ever had a single issue with the service.

It has to be brand new or dealer "new" for the tax break. You get a tax break against the full value of the car but within the taxable amount if that makes sense. I went into it thinking i'd get a 108k tax break but I was brought back down to earth by my account lmao
What do you mean by the taxable amount of the car? Could you please give an example with your 108k purchase? Thanks!
 


Tazer

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What do you mean by the taxable amount of the car? Could you please give an example with your 108k purchase? Thanks!
Best you contact your account as I probably have 0 idea what they actually said.

But I believe the allowance is on the VAT amount of the car. So the 20% is what you get off your tax....
 

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Best you contact your account as I probably have 0 idea what they actually said.

But I believe the allowance is on the VAT amount of the car. So the 20% is what you get off your tax....
You know what, ignore me as this probably isn't right... Speak to your accountant lol
 

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What do you mean by the taxable amount of the car? Could you please give an example with your 108k purchase? Thanks!
For a purchase with personal use you'd pay £108k, reclaim £0 VAT, and reduce taxable profit for the year by up to £108k, which would reduce your corp tax. You'd personally pay 0% BiK for 2020/21, and 1% for 2021/22.
 


RG2020

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Hello,
Has anyone ordered a 4s recently? I'm looking to place an order and have been told early April by Porsche Mayfair, March 21st by Hatfield and "mid-March" by Silverstone. Does anyone know of any dealers that can deliver one quicker?
Also, as a company car am I right that it has to be a brand new model in order to claim 100% against corporation tax? And does it have to be brand new for 0% BIK too.
Many thanks
Gitesh
My understanding is the car must be new when the company purchases it to claim the 100% first year allowances against corporation tax. On a £108k car, assuming you can't reclaim any input VAT you could put the £108k total value against your company's profits on your corporation tax return.

If you do reclaim any input VAT, lucky you, then the value to set off against corporation tax is the £108k less any input VAT you've claimed.

On the company car BIK I've not seen anything which says the car has to be new, even in this tax year if we had an electric car registered before 1/4/20 the tax rate would still be 0% so I take that to mean the car doesn't have to be new to qualify for that.

I submitted my P46(Car) back in August when it arrived and my tax code is as expected at 0% BIK.

I'm an accountant but I've not been in practice a few years so this information is based on my attempts to keep up to date since. Just as cover for myself; always check with your own accountant before taking any action!

Also ask them about how the 'fuel benefit' is treated. I believe there is a way that any electricity provided by the business to charge the car is tax free, but also if you don't do it correctly then you could be in for paying tax & NI on it.
 

legataycan

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For a purchase with personal use you'd pay £108k, reclaim £0 VAT, and reduce taxable profit for the year by up to £108k, which would reduce your corp tax. You'd personally pay 0% BiK for 2020/21, and 1% for 2021/22.
Thank you, this was my understanding also.
 
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911GP

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Thank you, this was my understanding also.
My understanding is the car must be new when the company purchases it to claim the 100% first year allowances against corporation tax. On a £108k car, assuming you can't reclaim any input VAT you could put the £108k total value against your company's profits on your corporation tax return.

If you do reclaim any input VAT, lucky you, then the value to set off against corporation tax is the £108k less any input VAT you've claimed.

On the company car BIK I've not seen anything which says the car has to be new, even in this tax year if we had an electric car registered before 1/4/20 the tax rate would still be 0% so I take that to mean the car doesn't have to be new to qualify for that.

I submitted my P46(Car) back in August when it arrived and my tax code is as expected at 0% BIK.

I'm an accountant but I've not been in practice a few years so this information is based on my attempts to keep up to date since. Just as cover for myself; always check with your own accountant before taking any action!

Also ask them about how the 'fuel benefit' is treated. I believe there is a way that any electricity provided by the business to charge the car is tax free, but also if you don't do it correctly then you could be in for paying tax & NI on it.

Thank you all. Just a couple of points to add to this: if your profits are less than the value of the car, from what I have read, you can offset all of your profits for the year and then carry forward the unused portion as writing down allowance the next year. Also, ex-demo cars can be also be included. I'll add the same caveat: please check with your accountant. Thanks
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