Optometrist with a limited company - why the Mercedes EQA Electric Car Lease is perfect for you

Why the Mercedes EQA Electic Car Lease is perfect for an Optometrist with a limited company

The UK’s small and medium businesses are now more attune to the amazing benefits of going electric with their company car fleet. But are enterprises, like Optometrists, being held back by fears instilled into them by the UK’s press and automotive media?

This has been an overwhelming concern for the e-car team, who have to commonly clarify so many “untruths” which are propagated into the mainstream discourse and which ultimately dissuade directors from moving their own car (or employees) into the greener technologies. Battery availability, and supply, is one such conundrum - with the UK having a limited infrastructure on this aspect.

But times are very much changing, with the recent announcement from Tata  which announced their plans to build a 40GW Gigafactory in the UK, with the JLR Group and Tata Motors as key anchor customers. Backed by the UK Government, as part of the EV agenda, the purpose built facility in Somerset will not only create around 4,000 jobs but will also push the UK towards more battery independence by as early as 2026! And with the capacity to supply at least 500,000 vehicles with battery cells, the ambitious plans to go zero-emission by 2035 seems all that more achievable. And to see the BBC reporting so kindly on this story too -  speaks volumes about the changing tides on the EV project.

Many optometrists operate their specialised eye health care businesses as a limited company, whether they be wholly independent or as a Joint Venture Partnership with a bigger group like Specsavers.

In setting up a company, there are an array of pros and cons for the directors and shareholders to manage. In particular, the company vehicles are an element which do need due care and attention as part of harnessing tax advantages and ensuring there is a commitment to cleaner and greener motoring solutions.

But can any limited company lease an EV?

As our business lease customer discovered for their new EQA, as a smaller company there can be pressure on the credit / underwriting aspect of contract hire in that extended due diligence can arise where - 1) the company has less than 2 year’s accounts filed at Companies House; or 2) there is limited information / profitability set out on Companies House.

To be clear, as a credit broker (not a lender), we work with a variety of finance companies who offer contract hire, finance lease and contract purchase solutions for UK businesses. While they offer some fantastic deals, there are criteria which the applicant must adhere to.

How does an optometrist apply for an electric car lease?

Every customer will be asked to complete a credit application form with our team via our Lythium system. This essentially ask for key details such as the company name, number, VAT number (where applicable) , registered and trading address, contact details for the lead director or fleet manager, at least 2 director details and business bank details (all rentals are taken by direct debit).

The finance company will use the information supplied to make a credit assessment by looking at Companies House, Experian and also performing a soft-search on the individual directors. In many cases, this can be an automated decision which takes mere moments to do.

In more complicated, or borderline cases, further information will be requested such as the latest accounts in full, business bank statements for the last 3 months or a personal guarantee from one (or more) of the directors. For smaller optometrists, it will be worth speaking to your accountant initially to understand both your tax position and to ascertain if the information for credit application is available to you.

In many cases, so long as there is a proof of income (and ability to meet the rentals) coupled with a strong credit profile of the director(s) then our finance companies will look to do business with you.

The importance of moving your opticians into electric vehicles has been shown in trade news, with profitable eye-care businesses looking to reduce their Corporation Tax exposure. Whether you should buy or lease your new EV is very much a query for the company accountant and your needs / requirements.

For operating leases, like contract hire and finance lease, the initial rental and monthly rentals are wholly tax deductible because the vehicle emits 0g/km of CO2. For VAT registered businesses, you can claim up to 50% of the VAT on the finance aspect and 100% on the maintenance aspects of the rental.

Any charge points you install at your premises are completely tax deductible (capital allowances / full expensing) and the energy used to fuel your new EV is not subject to private fuel tax calculations by HMRC, unlike petrol or diesel. And for the drivers of the BEV, there is the obvious benefit in kind (BiK) advantages.

With petrol and diesel, many business drivers will be acutely aware of the monthly tax they pay for the use of a company car. The more expensive (P11d) and polluting (CO2 - g/km) the vehicle is, the higher your tax exposure is. Because of the zero tailpipe emissions, the electric car will result in a much more reduced 2% BiK exposure, which essentially translates as minimal monthly tax bills. For owner-managed opticians, this means a reduction in your corporation tax bills without impacting your own personal tax position.

But are EVs really that good?

There is no catch in moving to an all-electric option, even with the humongous tax savings. The EQA AMG for example, offers amazing specification like privacy glass, comfort air suspension, easy-pack tailgate, navigation, Apple CarPlay, electrically folding and heated door mirrors, 10” media system and digital instrument cluster, sound system, AMG body styling, LED lights, climate control, flat-bottomed steering wheel, ambient lighting, seat comfort pack, stowage pack, parking pack (with reverse camera), heated front seats and alarm with Guard 360.

This EQA has a usable battery of 66.5 kWh which offers 168 kW (225hp), top speeds of 99 mph and 0-62 times of 7.7 seconds. Real-world ranges suggest a combined 180 miles in colder weather with warmer temperatures to allow for 245 miles (on a full charge) - combined overall at 215 miles.

The 11kW AC allows for 0-100% charging times of 7 hour and 15 minutes with the 112 kW DC enabling 10-80% in 29 minutes. It has a 131 mpg equivalent, 340L cargo volume and offers towing capacities of 750kg (Unbraked) and 1800kg (Braked). There is a heat pump on this EV. This model has no Bidirectional Charging with no V2L, V2H or V2G.

In terms of the car shown, the Mercedes-Benz EQA Hatchback EQA 300 4Matic 168kW AMG Line 66.5kWh 5dr Auto Pure Electric Vehicle, this is based on the following configuration:

•  Mountain Grey Metallic Paint 
•  ARTICO man-made leather / MICROCUT microfibre - Black with red topstitching
•  Light longitudinal grain aluminium trim painted
• 18" AMG 5 spoke light alloy wheels
•  Charging cable for wall box and public charging station - Type 2(mode 3) 5m 

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