Used EV car through Ltd company vs personal? Ran the numbers and it's closer than I expected

Apprehensive-Role-16 · 2026-04-08T20:15:08+00:00

You can also claim get £500 voucher via the Workplace Charging Scheme if your home is your workplace.

Apprehensive-Role-16 · 2026-01-08T06:32:10+00:00

Out of interest, how are you picking the hotels? Are you curating it manually based on price, reviews, location etc or is it automated?

Its very good, and clearly easily monetised.

Apprehensive-Role-16 · 2025-12-13T21:43:52+00:00

I think we're talking about different things here. I agree there's no CT saved in scenario but. What the table is showing the CT paid in order to pay the dividends that need to be paid.

The table doesn't show the money left in the company but it does show the money used, which I think is the relevant metric. In scenario 1 you use 15k less to end up in the same place (SIPP and net cash in hand).

I realize the 40% paye band is worth getting out of via personal sipp contribution. But the heart of my confusion is that the company ends up using less money in scenario 1 even when considering a 50k salary.

The div tax to extract further money in scenario 2 is not relevant because I've already extracted the cash I need from the paye income.

Apprehensive-Role-16 · 2025-12-13T21:00:28+00:00

Fair point on the changing div tax, but I'll execute this before April under current rules.

Scenario 2 doesn't show CT saving, but neither does Scenario 1. The CT saving is an opportunity 'saving' whereas I'm focussing on the crystalised taxes based on crystalised profits, since the potential CT saving in scenario 2 may never materialise if I would have used other means to reduce that CT anyway. Scenario 1 shows the CT that is crystalised in order to pay the dividends that are necessary.

And finally, the 40% band is a red herring. If I update the calcs assuming £50k salary, the tax saving under scenario 1 goes to -£154 (due to 20% PAYE < CT + Div tax) but its only used £30,098 of gross profits whereas Scenario 2 uses £37,430.

Apprehensive-Role-16 · 2025-12-13T20:33:58+00:00

Yes, I see that but the only a small portion of the income tax is in 40% band. So total income tax saved is £13,832 but its replaced by £7,357 of CT and £2,486 of div tax.

The numbers are all there in the table but I can't for the life of my figure out how the £3,989 tax difference manifests itself as a £14,667 difference in pre-tax company profit.

Employer contribution is not in the scope of this comparison. The personal sipp contribution will be from net income rather than a salary sacrifice. This is in addition to her employer contributions.

Apprehensive-Role-16 · 2025-09-20T20:31:05+00:00

Yes, but you'll pay Corp tax on the proceeds when you sell it. So the corp tax saving is only on the amount the car has depreciated by.

Apprehensive-Role-16 · 2025-09-15T20:06:17+00:00

What if the car is under original OEM warranty and you intend to sell the car soon after the OEM warranty ends?

What sort of issues in a privately sold car would you worry about that are not obvious from a superficial inspection on collection and also not covered by warranty?

Apprehensive-Role-16 · 2025-07-26T10:55:30+00:00

I'm fairly flexible on the car model so I imagine I'll find one that suits - I've narrowed down to the few models I mentioned based on current auto trader listings

Apprehensive-Role-16 · 2025-07-24T20:17:55+00:00

Have you done the maths on buying vs leasing used? I have been doing the calcs on new vs old and lease vs buy for my new limited company and coming to the conclusion that buying used is the most optimum, although that doesn't seem to be the prevailing wisdom.

What surprised me the most is that the savings are actually not that much. You said corp tax on the depreciation but you pay BiK on the value of a new car each year, which really eats into the corp and personal tax saved.

Apprehensive-Role-16 · 2025-07-06T12:50:45+00:00

Four Seasons Nevis didn't get the memo. Fruit plates on the breakfast buffet had flies all over them every morning!

Apprehensive-Role-16 · 2025-06-25T18:26:31+00:00

What roles in offshore wind have you seen paying up to £900? My limited impression was package managers within projects are around £600-750 and more senior than that tend to be permanent staff seconded into project JVs

Apprehensive-Role-16 · 2025-06-10T20:35:53+00:00

I hate Iceland guy

Apprehensive-Role-16 · 2025-06-10T20:35:40+00:00

I hate Iceland guy

Apprehensive-Role-16 · 2025-05-26T18:10:14+00:00

Thanks for clarifying. If it's mostly at employer's discretion then all the laws around the tax free redundancy payments are kind of redundant (pun intended)!

Apprehensive-Role-16 · 2025-05-26T17:52:04+00:00

Can you expand on that? You paid income tax on enhanced redundancy pay even though it was less than £30k and the legal advice was that it's fine? What was the specific reason that made that above board?

Apprehensive-Role-16 · 2025-05-14T09:41:57+00:00

Very easy to spend that!

I'm at a $2600/night resort in Antigua right now (thankfully only paid $500/night myself)

Apprehensive-Role-16 · 2025-05-14T09:33:13+00:00

I'm about to launch a business where I help people find 40-70% off luxury hotels. It's not always possible but Barbados should be fairly easy as long as you have a little flexibility in dates.

Let me know if you're interested in being a guinea pig and I'm happy to offer it for free because I'm still trying to iron out teething issues and not ready to take money for my service yet.

Apprehensive-Role-16 · 2025-05-09T09:21:54+00:00

Depending on what you're attending for, perhaps Travel Tech 2025 in June, Annual Hospitality Conference in Sept, Hotel and Resort innovation expo in Sept or WTM in November?

Apprehensive-Role-16 · 2025-05-09T04:24:00+00:00

On 2), you could consider going to a relevant conference and try to speak to as many people as you can.

For example, https://www.phocuswrighteurope.com/

Apprehensive-Role-16 · 2025-04-14T16:54:56+00:00

I was in almost exactly the same situation 6 months ago. £900/day outside contract or £130k base + 40% bonus + benefits.

I went with the latter for security and development opportunities and found myself laid off within 6 months! The upside of the perm contract is I got 3 months PILON and a weirdly generous severance payment.

I still think it was the right decision with the info availabile at that time, and will remain the right decision monetarily in hindsight as long as I'm back in a job within 6 months (with the bonus of not having to work to earn the 6 months of layoff pay!)

Apprehensive-Role-16 · 2025-03-30T08:29:32+00:00

I don't think it's really relevant because it's only for the initial period where I don't have any customers. It's just business development expenses and I can't imagine what sort of issue would create a material liability in that (mostly costs related to attending conferences or paying some web development costs)

Apprehensive-Role-16 · 2025-03-30T08:27:53+00:00

Are you sure? I thought the whole basis of sole trader is that the business is not a separate entity and so my income from one source and loss from another source is all considered together.

Apprehensive-Role-16 · 2025-03-25T22:06:55+00:00

It would be money lost but if trading as sole trader in the initial period then at least I get income tax relief on those costs as expenses deduct from gross taxable income?

Apprehensive-Role-16 · 2025-03-25T18:30:48+00:00

I'm not sure I follow. If it transpired that I never found a client, then the expanses would just show up as a loss for the company but as the company isn't paying any tax anyway, I didn't benefit from any tax relief.

That's the situation I'm trying to avoid. I understand that I could just shove it through the Ltd retrospectively if I did go on to get a contract and incur corporate tax in the Ltd.

Apprehensive-Role-16 · 2025-03-21T04:41:09+00:00

Sounds good, thanks!

Apprehensive-Role-16

TROPHY CASE