So I was chatting to a client today whilst clarifying a few points on the facility review for his business.
I noted that the company car costs had doubled so asked what he had treated himself to.
Turns out its a McLaren 570 GT and he added that surprisingly it only costs about £300 a month more than an Audi RS3!
I had a quick check tonight and he's not wrong...
McLaren:
On the Road Price £134.950.83
24 Monthly payments of £999.00
Customer Deposit £20,000.00
Audi:
On the Road Price £47,310
23 monthly payments £684
Customer deposit £4,731
OK so the deposit is quite a bit different and the mileage allowance on the Audi is 10k and 5k on the McLaren but the real shocker is the excess mileage which varies from £1.20 to £2.40 on the McLaren and is £0.11 on the Audi.
If you can, why not!?
Last edited by: zippy on Thu 28 May 20 at 21:44
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Has he got any jobs going? I quite like his company car policy.
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....the custom dog cage would eat the rest of your salary (and it wouldn't tow your shed)
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>> ....the custom dog cage would eat the rest of your salary (and it wouldn't tow
>> your shed)
Someone in the Swift Base camp group tows using a Macan, we were discussing who could get their shed up to 60mph fastest
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>> Has he got any jobs going? I quite like his company car policy.
>>
His company is now 3 years old and not really borrowing save for the car.
I know! Work have a 130g Co2 limit for company cars now so I could get one of his wheels, perhaps add some pedals to it.
He's a thoroughly likeable chap as well!
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Ignoring the deposit, mileage and excess mileage charge is one thing....but the BIK tax on a McLaren is also a bit on the high side... 37% of £135k at 40%/45% is a big number..it’s bad enough for an RS3!
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>>BIK
I did suggest he talk to his accountant re BIK, it might be cheaper to fully repay the company and take the car liability personally.
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Fag packet numbers...It’s early...
BIK on that car is roughly £22k a year, so £44k over the 2 year period
Actual lease costs another £44k, and employers NI at 13.8% of the P11D value is payable - another £38ish k over 2 years. They’ll both be offsetable against corporation tax which will ‘save’ about £16k. So cash out (his and the companies) somewhere in the region of £105k. Maybe a bit less if there’s some recoverable VAT on the lease. To drive 10,000 miles...before petrol...
Tax on dividends is 38.1% for additional rate tax payers, so to cover the lease costs personally you’d have to gross up the £44k to around £71k. Dividends come out from profit after tax, so Corp Tax will have been paid. Grossed up for that we’re at about £88k cash cost, no BIK applicable
Paid as salary, £44k grossed up (assuming 45% tax payer) means paying £80k gross, plus the associated NI which I think gets you to around £93k cash out
So depending on the VAT situation, actually not that much in it in the end... sadly there’s no cheap way of driving a McLaren ;)
The last two also show that whether income is extracted via PAYE or dividends in a limited company, the government takes pretty much the same amount...
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BiK on electric cars is 0% this year I think and 1% next year.
Tesla Model S Ludicrous would be way more useful/cheaper/as quick as a McLaren....
Last edited by: Lygonos on Fri 29 May 20 at 09:05
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>> BiK on electric cars is 0% this year I think and 1% next year.
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>> Tesla Model S Ludicrous would be way more useful/cheaper/as quick as a McLaren....
But pig ugly in comparison. And GP's aspire to them, destroying their street cred.
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>> But pig ugly in comparison. And GP's aspire to them, destroying their street cred.
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Ouch!
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McLarens look awesome but they just emphasise how much of middle-aged tool the driver is.
A bit like Aston Martins.
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McLaren - McLaren vs Audi RS3 - Zero
