Taxation. Best way to buy for a Ltd Company

[Myusername]

Hello everyone. Im looking at getting the Taycan and I'm getting more and more confused the more I read about the various purchase options.

Normally we lease the vehicle and can therefore claim 50% of the VAT on the invoice. However, Porsche have said that a PCP would be better, as I can offset the value of the car in Y1 against profit and therefore reduce my corp tax payment. However, unlike with the lease, I'm not able to claim the VAT using PCP.

The costs of the two methods seemed relatively close to one another. PCP is circa £1100 a month.

Can anyone give me some insight if I am understanding this correctly or not!

Also - in anyone's experience, is it cheaper t get from a 3rd party lease company or from the manufacturer directly?

Thanks in advance.

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[W1NGE]

Hello everyone. Im looking at getting the Taycan and I'm getting more and more confused the more I read about the various purchase options.

Normally we lease the vehicle and can therefore claim 50% of the VAT on the invoice. However, Porsche have said that a PCP would be better, as I can offset the value of the car in Y1 against profit and therefore reduce my corp tax payment. However, unlike with the lease, I'm not able to claim the VAT using PCP.

The costs of the two methods seemed relatively close to one another. PCP is circa £1100 a month.

Can anyone give me some insight if I am understanding this correctly or not!

Also - in anyone's experience, is it cheaper t get from a 3rd party lease company or from the manufacturer directly?

Thanks in advance.

Ask your accountant what the best option is. There is both personal and corporation tax to consider. In UK there is zero benefit in kind (BIK) tax on running a company car for 2020/2021 (1% this year and 2% the following year) - so a significant saving straight off the bat (it was previously 16%).

For the company there is a 100% allowance on the capital purchase if you go that way.

 

[Fish Fingers]

I would also post this up on the UK section as its a region specific question.

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