Budget 2019 and EV

ELM327

Shefwedfan wrote: »

So this means

If you bought your Tesla last year then you are ok for the term of the contract and BIK 0% stands

If you buy your Tesla today then you will have to pay BIK on it because you got told about it

Sounds reasonable to me

Only on the portion above 50k though

Casati

ELM327 wrote: »

Only on the portion above 50k though

Yeah that’s still a massive benefit and indeed loss of tax to revenue

Using rough number I know employees offered a 50k company car or 15k car allowance

If they take the allowance, then they pay paye, prsi that adds up to 7800 per annum - 52% tax rate. If they take a 50k car, don’t have many business miles, then they pay an extra 7800 in BIK (30% of 50k @ 52%.

If they elect to get a 50k electric car now, they see the tax paid reduce by 7800

For employees in this situation - which is a relatively high number, this BIK tax incentive will cost revenue 7800 per person

Now what needs to happen to make this feasible is for a few 50k exec sized ev’s to come on the market

unkel

Giotto wrote: »

Not sure that is correct Unkel.I think the amendment means that there will be zero BIK in 2018,2019 and 2010 on any Tesla first provided by an employer during the period 10 October 2017 to 9 October 2018.
This applies irrespective of value.
This is only fair given that throughout that period various government departments gave unqualified assurances of 3 years zero BIK in an effort to increase EV sales

My bad, I read that too quickly. Yes you are right, no limit on zero BIK for an EV ordered in the past year

And I agree it's only fair, even though the minister always said there was one year of zero BIK and after that he would re-assess. Only a politician who never worked in industry could come up with such a silly notion :rolleyes:

If it was up to me, all EVs no matter how much they cost would be zero BIK until further notice. With plenty of warning for when the scheme would stop.

ELM327

Casati wrote: »

Yeah that’s still a massive benefit and indeed loss of tax to revenue

Using rough number I know employees offered a 50k company car or 15k car allowance

If they take the allowance, then they pay paye, prsi that adds up to 7800 per annum - 52% tax rate. If they take a 50k car, don’t have many business miles, then they pay an extra 7800 in BIK (30% of 50k @ 52%.

If they elect to get a 50k electric car now, they see the tax paid reduce by 7800

For employees in this situation - which is a relatively high number, this BIK tax incentive will cost revenue 7800 per person

Now what needs to happen to make this feasible is for a few 50k exec sized ev’s to come on the market

It's 7800 per person now, but in 1-3 years time instead of a 730d or S320d on the second hand market there's a Tesla Model S or Etron or I pace etc. Trickle down effect. So the next person that was going to spend money on a nearly new executive sedan has an EV as an option.

Marcusm

unkel wrote: »

My bad, I read that too quickly. Yes you are right, no limit on zero BIK for an EV ordered in the past year

And I agree it's only fair, even though the minister always said there was one year of zero BIK and after that he would re-assess. Only a politician who never worked in industry could come up with such a silly notion :rolleyes:

If it was up to me, all EVs no matter how much they cost would be zero BIK until further notice. With plenty of warning for when the scheme would stop.

It’s not “ordered”, it’s provided.

Any talk of the 0% BIK for EVs being extended in Budget 2020?

A number of climate action measures are being floated (after inaction in Budget 2019) and they will need some 'positive' news to sit beside things like carbon tax.

If you were thinking of buying a company electric vehicle in 2020, the 2021 end date would put you off completely.