New company car

[Layfs]

A note of caution is you can only claim 45p tax free for the first 10k. If your doing significant mileage (i.e. 30k+) then you will be battered by depreciation and it's much more sensible to go with a company vehicle on lease.

You can only claim half the vat back on company cars.

An average repmobile like a 320d will cost you an extra £3,000 in tax each year if your in the higher tax bracket. Hybrids are a LOT cheaper currently but I expect the government will change the rules once they become more popular.

If you want to save tax a commercial vehicle is the best option (I'm currently looking at an Amarok pickup) as company car tax is very low.....plus all the vat is deducted.

[itavaltalainen]

Out of curiosity what is the issue with paying yourself more for mileage than the car costs or did I misunderstand you?

I figured that 45p a mile covers you pretty well for all overheads as well as the car itself (unless taxation cuts in). When I say figured I actually did the maths and even at >40k per annum I would have easily still broke even or even got out on top (list price on my car was 30k)! But that was just a mind exercise as my company does not allow people to opt out if they do over 10k on business a year.

[remlapeel]

I'll try and explain my situation a bit clearer.

I own a business with 2 other people

Currently I pay for my car plus all associated costs. Including insurance. With this is claim 45ppm for the first 10k then it drops down for any remaining miles over. Currently this works best for me financially.

Next year I'll be dropping days and moving locations so my mileage would drop to around 6k so if I keep paying for my own car I'll lose out and the business gains money, but as profit is split 3 ways I'll effectively take a pay drop. So if I get a company car, the business will pay for the car and all costs and profit will be split after the costs of the car have been taken into account, but because my mileage claim will be at 12ppm the business effective cost doesn't change.

It's complicated but it works, so I want to BIK low ish but I want a decent car

[Adam]

Audi e-tron is 150PS and expensive to boot.

150ps is only the petrol motors output. Combine it with the electric motor and you'll have 205ps with a 0-60 of 7.6 seconds. It's worth the initial outlay.

[phope]

What about the Passat GTE hybrid? 215hp and 295 lb-ft torque

http://www.greenmotor.co.uk/2015/07/volkswagen-passat-gte-review.html

Not as premium as the BMW or Mercedes, but the latest model seems to get a very good write up, and the GTE also has the 5% BIK. Not sure how the standard spec compares your other choices, but cost could be less for equivalent spec.

Plus, if you were to get any hybrid with less than 75g C02, your business gets 100% enhanced capital allowance for the purchase price to offset against company tax bill, which I'm sure your accountant will explain and help flatter your company profits

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/315604/factsheet-tax-implications.pdf

[Layfs]

Lol so what your saying is you want the bun and the penny 

I'll try and explain my situation a bit clearer.

I own a business with 2 other people

Currently I pay for my car plus all associated costs. Including insurance. With this is claim 45ppm for the first 10k then it drops down for any remaining miles over. Currently this works best for me financially.

Next year I'll be dropping days and moving locations so my mileage would drop to around 6k so if I keep paying for my own car I'll lose out and the business gains money, but as profit is split 3 ways I'll effectively take a pay drop. So if I get a company car, the business will pay for the car and all costs and profit will be split after the costs of the car have been taken into account, but because my mileage claim will be at 12ppm the business effective cost doesn't change.

It's complicated but it works, so I want to BIK low ish but I want a decent car

[remlapeel]

After doing some research I am currently looking into a Jag XE R-Design. 163ps (DTUK box takes it to 195) 99g CO2 so 13%BIK 75mpg combined and amazing spec as standard and weirdly very cheap. Anyone had any experience with these?

[fredgroves]

This:

http://www.autoexpress.co.uk/jaguar/xe

Against: Limited rear space, small-ish luggage capacity

Doesn't sound terribly double child capable to me...

Plus its heavier and lower powered than the Mk7 GTD.

I don't think its practical nor fun really...

[ffrank]

I've driven the 240 and 340PS Petrol XE. Very poised and capable cars. I didn't drive the diesels but a friend has the R-Sport 200bhp Diesel XF and loves it. At higher motorway speeds it's not far off my DTUK GTD, which we put down the 8 speed box gearing, but is a way off at more reasonable speeds (we've compared extensively!)

They aren't as exciting as the MK7 to drive - probably due to everything being a bit too subdued, the XE still handles very well though, and can definitely entertain on an A road.

I would love an XE S (it's been hard to stop thinking about it!), but think it would have to be a manual first and I'm not sure that will ever happen.

Funnily enough, the above friend and I jumped from the 340PS V6 XE S in to my GTD, and we were both just amazed at how fantastically the Golf compared.

We also prefer the Golf dash, the plastics are better and everything is more thought out. Some of the controls are confusing in the XE although the overall cabin feel is good and the seats are better - my whole back felt amazing. I do like the sweeping shapes around the doors and dash (like a boat), and the bonnet bulge in front gives a muscle car feel.

Disclaimer - I'm not trying to sell you my GTD again Probably going to keep it another 6 months for now. But still - a DTUK GTD with sport and sound, good tyres and DCC, it's awesome.

[JBirchy]

Exactly that. We are VAT registered but are still only a small company so it works out better for us to do it personally. Plus, I really don't want to have to go diesel. I'm hoping for a BMW 340i M-Sport next time round so I don't think that would work very well for BIK!

The 340i is on my radar too, have you been able to see one Jon? I want to test drive one (manual preferably), but no luck so far.

I literally just got home from driving it's rival - the Jag XE S. Was awesome, sounds great - although quieter in the cabin than I expected. Best thing was the instantaneous power from the pedal - part in thanks to the supercharger and part in thanks to me being used to a turbo diesel  Discounts are much better on the BMW, but the spec is lower and the Jag holds it's value better so it's not such a huge difference. Jaguar sales team were very cool, have told me pick it up for a 24hr loan when it's dry (was soaking wet today).

Ooh now it really does sound like we've got similar thoughts here. I'm very intrigued by the XE-S too. I love the exterior design and love the engine, but I sat in the back of one (or tried to) with the seat in my driving position and I just don't think it's big enough for my needs. I do keep thinking about them though, if they did a Sportbrake I'd be very interested.

I've seen a 340i with some M-Performance goodies on the road, not up close but I followed one for a bit. Sounded stunning and the new LED rear lights looked ace.

I've sat in an XE and a new 3-Series back to back though, and I must admit I preferred the BMW thanks to it's better driving position for my 6' 1" frame (could get the drivers seat lower and steering wheel reached out further to me) and also the media screen is at a higher level which makes looking at the screen easier whilst driving. I also prefer iDrive to the touch screen.

New Audi S4 will be worth a look too, generous spec, good looking, quattro and the MQB II chassis. Promises to be a superb car.