 | Home > INEOS Grenadier > Super deduction Tax |
 
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| rusty_wingnut Member Since: 24 Mar 2011 Location: UK Posts: 105  |
All very good, but reality is it's hard to determine what is personnal v business. Look at the number of trades vans that do the football run on a weekend!
I quite like the idea of the 130% on the Grenadier, is there no way of purchasing early, and having them deliver later? |
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9th Jan 2023 7:38pm |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373 
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Why does personal miles vs business miles matter. If you are running it as a company van you are not restricted on personal mileage if you are paying the benefit in kind on van usage?
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9th Jan 2023 7:48pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2865
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l've claimed Super Deduction on my new Defender Commercial
This means l can claim £70,000 against my taxable income, and it can be carried forward to subsequent years if like me you don't make that much every year. You can also claim one previous year, but not until your next accounts, so you can get a refund of this years tax. Sadly l am not VAT registered but it's still saving me £14,000 in tax. Which is how l justified spending £54,000 on what's essentially a posh van. The Defender is fabulous. Mine arrived in November and l've had no issues with it so far. l did have a Grenadier order (it's a similar price) but went for the Defender because there was no delivery date for the Grenadier. As already stated above, the vehicle has to be registered before March 2023 Click image to enlarge |
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10th Jan 2023 8:11pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2865
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l have to say though, l think the Grenadier will be a much better proposition for serious off road driving than a new Defender.
Why? Because it will be at home there, like the old Defender. You won't mind taking the Grenadier down a challenging green lane, unlike the new Defender which is just a bit too, well, precious. Although it will of course do it, if your budget will stretch to repairing the scratches and other off road damage. For instance the Defender mud flaps might look like the old model's but they easily get ripped off if you hit a rock or similar with them. They appear to be more plastic than rubber. And the visibility when cresting a rise is terrible. lt doesn't bother me, but if l was planning a lot of "off piste" or expedition driving l would have held out for a Grenadier. |
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10th Jan 2023 9:35pm |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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As discussed previously, the super deduction is great at lowering your immediate tax bill but you still end up paying tax when you come to sell the vehicle (albeit on a potentially lower sale price).
With corporation tax going up to 25% next year it will still be a sizeable amount. Not an issue if you're intending to keep the vehicle for years until it isn't worth very much. Different story if you're looking at renewing it in 2 years. Example: (assuming vat registered). New vehicle purchase price of of £50k + £10k vat. Super deduction is 130% of the £50k = £65k x 19% = £12350 saved off next tax bill. If resale values are still high, lets assume the vehicle is sold in 2 years for £40k + vat. The £40k is taxed as profit (as the book value of the vehicle is £0) @ 25%. There is therefore £10k tax to pay so the real saving over the period of ownership is only £2350. Individual calculations will vary as the new 25% corporation tax rate is tapered for companies with over £50k profit. |
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10th Jan 2023 11:28pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2865
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My plan is to keep the Defender long term, probably ten years, or longer is it's still good after that time.
The increase in Corporation Tax is a stinker but (as you say) it doesn't apply to small Limited Companies like mine, where the profits are less than £50,000 PA. Hopefully the new Defender will last the distance. l know l am taking a chance, if it turns out to be a money pit as it gets older l'll have to change it, but l've got customers with early Discovery 3's still going strong after 15 years and well over 100,000 miles |
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11th Jan 2023 9:15am |
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