Electric Car Purchase , Ltd Co or Private

B

Boru38

Registered User
Messages
12
Hello All,

I am LTD Contractor and trying to understand which is more logical from financial point of view.

Buy New Electric Car via Company approx value 45K
Buy 2nd hand Electric Car via net income 18K

thanks

Brian
 
sorry to piggy back on this . but i have a similar question, but its more about what to do when selling an company EV ,

i assume i get an official trade-in valuation figure in writing.

can i buy the EV (as a company director , 2 directors in the company) from the company
the EV is 2 years old , and this will happen in Jan 25 (more than likely , depending on BIK rules)

should i just sell the EV to the Public / garage and just buy a private car /EV - keep the transactions separate

and finally, i want to minimize the taxes on the money going to company for sale of EV,

im thinking of just putting it straight into Pension?

civil servant rates on private car is not possible for me.

is this a good idea?

open to suggestions.
 
Boru38 said:
Hello All,

I am LTD Contractor and trying to understand which is more logical from financial point of view.

Buy New Electric Car via Company approx value 45K
Buy 2nd hand Electric Car via net income 18K

thanks

Brian
Click to expand...
Just be aware of the BIK on an EV.
Currently first €45k is not counted towards the calculation, but this becomes
€35k in 2025 - BIK €187.50/mth for high rate tax payer.
€20k in 2026 - BIK €468.75/mth
€10k in 2027 - BIK €656.25/mth
and then is gone - BIK €843.75/mth

The Government budgets over the last few years have extended this out so it's always possible that the higher exemptions could continue.
If you're company is throwing off more cash than you need after pensions,etc. then it may be worth considering.

Otherwise it might be worth just buying the car second hand as tax and ongoing upkeep are lower than non-EV
 
Last edited:
mc-BigE said:
sorry to piggy back on this . but i have a similar question, but its more about what to do when selling an company EV ,

i assume i get an official trade-in valuation figure in writing.

can i buy the EV (as a company director , 2 directors in the company) from the company
the EV is 2 years old , and this will happen in Jan 25 (more than likely , depending on BIK rules)

should i just sell the EV to the Public / garage and just buy a private car /EV - keep the transactions separate

and finally, i want to minimize the taxes on the money going to company for sale of EV,

im thinking of just putting it straight into Pension?

civil servant rates on private car is not possible for me.

is this a good idea?

open to suggestions.
Click to expand...

Check with your accountant but I was advised to have two quotes and there is no problem buying the car from your company.
Like any other money that reaches the company account it can be paid as salary or into pension.

Personally I would let the car depreciate while the company owns it and while the BIK limits are quite generous.
Leaving it another year would mean you have to pay less for the car from the company.
 
You must log in or register to reply here.
Back
Top