How I Bought a Brand New Tesla Half Price

TL;DR

Buying a Tesla Model 3 as a business expense can result in significant financial benefits due to corporation tax savings, zero percent benefit in kind tax, and reduced dividend tax and student loan repayments.

Transcript

• So I recently bit the bullet and did the standard Youtuber thing of getting a brand new Tesla Model 3. And so in this video I wanna explain to you, and more importantly to my mum who's watching, why this wasn't just a massive flex, and why I think it was actually a pretty reasonable financial decision. So I bought the car in July 2020 and I order... Read More

Key Insights

• 🥺 Buying a Tesla Model 3 as a business expense can lead to significant financial savings due to tax benefits.
• 😨 Fully electric cars in the UK are exempt from benefit in kind tax, making them more affordable for businesses.
• 🚕 Corporation tax savings, reduced dividend tax, and student loan repayments further decrease the cost of buying a Tesla Model 3 as a business expense.
• 👻 Having your own business allows you to enjoy tech and other business expenses at a lower cost.
• 👨‍💼 The financial advantages of buying a Tesla Model 3 as a business expense make it an attractive option for solopreneurs, creators, and internet entrepreneurs.
• 🈺 Starting a business can open up opportunities for acquiring high-priced items, such as cameras and tech equipment, at a reduced cost.
• 🚙 The UK government's incentives for electric cars aim to increase the adoption of environmentally-friendly vehicles.

Questions & Answers

Q: How does buying a car as a business expense result in tax savings?

When a business buys a car exclusively for business use, the cost can be written off as a business expense, reducing the overall profit and, consequently, the corporation tax paid.

Q: Is it legitimate to write off a car as a business expense?

To write off a car as a business expense, it must be wholly and exclusively used for business purposes. Personal use should be insignificant or incidental.

Q: Why are fully electric cars exempted from benefit in kind tax?

The UK government incentivizes the purchase of electric cars by reducing tax rates. Fully electric cars, like the Tesla Model 3, are exempt from benefit in kind tax to encourage their adoption and promote environmental sustainability.

Q: How does buying a Tesla Model 3 as a business expense compare to taking out cash instead?

Buying the Tesla Model 3 as a business expense results in a cost of around £40,500. Taking out £50,000 as cash instead would be subject to corporation tax, dividend tax, and student loan repayments, resulting in approximately £24,877.

Summary & Key Takeaways

• The base price of a Tesla Model 3 is £40,490, but with additional features, the total cost can reach £50,000.

• By buying the car as a business expense, the cost is reduced to around £40,500, thanks to corporation tax savings.

• Additionally, the zero percent benefit in kind tax for fully electric cars and reduced dividend tax and student loan repayments make the car even more affordable.