Post by RobinPost by Peter HillPost by D A StocksPost by RJHBMW introduces new heated seat subscription in UK
https://www.bbc.co.uk/news/technology-62142208
I pointed out in another forum that this sounds like a fairly logical
response to the way vehicle taxation works in countries where certain
tax elements are based on the original sale price. I know that in the
Netherlands leasing companies buy cars with the most basic trim level
and then send them to specialist companies to have all the options
and premium trim fitted. This can mean replacing a brand new cloth
interior with leather, for example.
In terms of the whole life cost for the car I can see it being a lot
cheaper to fit certain options at the factory and then recover costs
later via activation fees.
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DAS
The Dutch taxman may be naive but isn't the HMRC wise to things like that?
Yes - but the trick could still work to avoid the additional VED on some
cars with a list price over £40,000.
HMRC are well aware of the issue. The benefit in kind charge on a
company car has depended on its "list price" since 1994. That price
includes accessories fitted at any time.
The same definition of "list price" is used for the additional VED on
cars costing over £40,000 but there does /not/ include accessories
fitted after the car is first registered. I don't know why but guess
that HMRC baulked at the complexity and cost (to them and the trade) of
setting up a whole new system of returns. They may well have told the
trade they would act if there's evidence of abuse at scale.
HMRC are more likely to have baulked at the impossibility of the task
(since complexity seems to be their trademark)
Privately owned and registered cars are subject to the same VED regime
as company cars, so an aftermarket set of alloy wheels (just as an
example) would need to have a different VAT rate depending on the end
user, and possibly a different rate depending on the value of any
company car which they are fitted to - leaving wholesalers of alloy
wheels in a rather difficult position.
In more than 40 years of self-employment / freelancing / whatever I have
never bothered with claiming for a company car as it’s much easier to
claim private car mileage, and if the mileage piles up during the
financial year then just register a different car (maybe like the one
that my wife drives ?)
My general impression is that company cars are dying out quite a bit
anyway and that accountants have found better ways to get things done,
often involving contract hired pool cars.
Getting back to the OP however ... I am wondering if some of these power
hungry gizmos, like seat / mirror / screen heaters, demisters, aircon
etc will need to be thought about in terms of the amount of battery
power which they will consume on electric vehicles. I assume that most
electric cars are fitted with power steering too ?
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