C350e anyone considering one?

[thewinelake]

Mmm 350 litres.... only 15 more than the saloon! My superb has 625.
But with the parcel shelf removed and the rear seats down it's 1470. Skoda has 1760 (estate has 1950)

 

[Dodgy]

From memory BIK on the standard setup (17" wheels and under 50 g/km) is 9% in 17/18, 13% in 18/19 and 16% in 19/20.

Planned to drop back to 14% I think when the new 'miles on electric' bands are supposed to come into play.



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Ouch! That's nothing like an incentive to shift away from diesel.


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[Dodgy]

Mmm 350 litres.... only 15 more than the saloon!

Yes, but you can retract or remove the parcel shelf. That might make it 500-ish, but it's still not big.


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[ChuckNorris]

Ouch! That's nothing like an incentive to shift away from diesel. Sent from my iPhone using Tapatalk

I think it is. If I replaced my C250d with the same model again my BiK percentages are 24%, 26% and 29%.

Over course of my 3 year period a C250 will cost c.£11k tax and a bmw 330e would be c.£5,200.

This is in addition to any personal contribution I make.

 

[thewinelake]

I think it is. If I replaced my C250d with the same model again my BiK percentages are 24%, 26% and 29%.

Over course of my 3 year period a C250 will cost c.£11k tax and a bmw 330e would be c.£5,200.

This is in addition to any personal contribution I make.

But with those BIKs, surely it's better for your company to give you cash (taxed at 40%+NIC) and then you pay for your own car?

 

[Dodgy]

I think it is. If I replaced my C250d with the same model again my BiK percentages are 24%, 26% and 29%.

Over course of my 3 year period a C250 will cost c.£11k tax and a bmw 330e would be c.£5,200.

This is in addition to any personal contribution I make.

My BIK schedule is 5%, 7%, 9%, based on delivery last June. Company cars are fast becoming a poor option. I could buy a nearly new and be better off after three years, but I do low mileage, so that wouldn't be true for everyone.


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[CaptainChaos]

But with those BIKs, surely it's better for your company to give you cash (taxed at 40%+NIC) and then you pay for your own car?

You might have missed my post on the previous page?

Don't forget you are not paying £5,200 to have the car.
That is the benefit in kind, on which you get taxed at your income rate.
So 20% of £5,200 or 40% of £5,200.

So you are paying £1,040 or £2,080 a year to run a £40,000 car which I think is worth doing.

 

[Rassiloth]

You might have missed my post on the previous page?



Don't forget you are not paying £5,200 to have the car.

That is the benefit in kind, on which you get taxed at your income rate.

So 20% of £5,200 or 40% of £5,200.



So you are paying £1,040 or £2,080 a year to run a £40,000 car which I think is worth doing.

Add in that my company pays a truly dire allowance!



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[thewinelake]

You might have missed my post on the previous page?



Don't forget you are not paying £5,200 to have the car.

That is the benefit in kind, on which you get taxed at your income rate.

So 20% of £5,200 or 40% of £5,200.



So you are paying £1,040 or £2,080 a year to run a £40,000 car which I think is worth doing.

Ah, but you've ignored what the company are paying! If they just gave you the cash instead of paying the £4000+VAT*/year for a lease then the sums would be different (* I don't know if the 50% VAT exemption still applies)

 

[CaptainChaos]

Ah, but you've ignored what the company are paying! If they just gave you the cash instead of paying the £4000+VAT*/year for a lease then the sums would be different (* I don't know if the 50% VAT exemption still applies)

If it's your own company, then you can manipulate the figures to suit your own needs best. The link I provided earlier is excellent for working out the costs to both company and employee.

If you are an employee, it's very unlikely that the company will pass on (all) their savings of running the car to you.

If you work on private leasing a C350e for 12,000 miles a year for 3 years you are looking at approx £500 per month and £3,000 down without maintenance. That's what you need to find after tax.

(Figures from https://www.contracthireandleasing.com/personal/car-leasing/mercedes-benz/c-class/ )

 

[thewinelake]

If it's your own company, then you can manipulate the figures to suit your own needs best. The link I provided earlier is excellent for working out the costs to both company and employee.



If you are an employee, it's very unlikely that the company will pass on (all) their savings of running the car to you.



If you work on private leasing a C350e for 12,000 miles a year for 3 years you are looking at approx £500 per month and £3,000 down without maintenance. That's what you need to find after tax.



(Figures from https://www.contracthireandleasing.com/personal/car-leasing/mercedes-benz/c-class/ )

For me as a director I can manipulate the figures and it seems to me that 15% is about where it's not worth it. I'm looking at about £9,500 over 2 years (inc VAT) and calculating based on being well into 40% territory. I'll come up with a full analysis.

 

[thewinelake]

Btw, do the panel think MBUK might be minded to drop the list price of any of their cars by a few hundred quid to get below the punitive £40k threshold, and reduce discounts commensurately?

 

[Dodgy]

Btw, do the panel think MBUK might be minded to drop the list price of any of their cars by a few hundred quid to get below the punitive £40k threshold, and reduce discounts commensurately?

That would be far too sensible. I saw someone claiming recently that they had a quote from drivethedeal: £30k for a basic model. Sounds too good to be true, but it doesn't change the list price.


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[thewinelake]

That would be far too sensible. I saw someone claiming recently that they had a quote from drivethedeal: £30k for a basic model. Sounds too good to be true, but it doesn't change the list price.


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That was me. Thing is that the few pennies over come to £1500 in additional VED! So it's making me favour the basic car (I think I can squeeze metallic paint in) and then fit aftermarket goodies such as Stereo.

 

[ChuckNorris]

But with those BIKs, surely it's better for your company to give you cash (taxed at 40%+NIC) and then you pay for your own car?

If I had the option of a cash allowance I'd take it but unfortunately I have to have a company car (also fitted with a joy-sapping telematics box).

Toying with telling them to stick the car and effectively losing a piece of my package but the 350e / 330e are the most attractive propositions if I remain in the fold.

Iirc the 350e would cost me c.£110 pm plus bik and the 330e would be £60 pm plus bik (both for sport models before extras). Both of those are miles ahead of my current c250d package

 

[thewinelake]

Oooh, telematics!

 

[wivenhoe]

For me as a director I can manipulate the figures and it seems to me that 15% is about where it's not worth it. I'm looking at about £9,500 over 2 years (inc VAT) and calculating based on being well into 40% territory. I'll come up with a full analysis.

If you own the company then you will gain a massive saving in corporation tax. Due to its emissions you can write off 100% of the purchase cost against corporation tax. Therefore say you pay £ 35k x 20% = £ 7k less tax. It is the same with lease costs, if it's a low emission car the business can write off 100% of the lease cost, whereas high emissions can only write off far lower %'ages. That's why businesses are making these cars options as company cars - massive savings in tax.

 

[thewinelake]

If you own the company then you will gain a massive saving in corporation tax. Due to its emissions you can write off 100% of the purchase cost against corporation tax. Therefore say you pay £ 35k x 20% = £ 7k less tax. It is the same with lease costs, if it's a low emission car the business can write off 100% of the lease cost, whereas high emissions can only write off far lower %'ages. That's why businesses are making these cars options as company cars - massive savings in tax.

Ah. Well. Trouble is we're not cash positive!

 

[wivenhoe]

Ah. Well. Trouble is we're not cash positive!

Leasing corporation tax relief is :-

Vehicles with CO2 emissions of 130g/km or below are entitled to an annual 18% allowance.
Vehicles with CO2 emissions above 130g/km are entitled to an annual 8% allowance.
First Year Allowances for electric cars are available at 100% if CO2 emissions are 75g/km or lower.

 

[TheCorm]

My BIK schedule is 5%, 7%, 9%, based on delivery last June. Company cars are fast becoming a poor option. I could buy a nearly new and be better off after three years, but I do low mileage, so that wouldn't be true for everyone.


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You sure?, I took delivery last April and have never been on the 5%, was on 7% last year and now 9%.