Business car leasing
#1
Business car leasing
Ok so I just want to know the financial tax advantages of running a lease car for a sole trader business.
I'm in the position to either get a 6-7k car outright or go down the lease route. I would ask my accountant but he is a right pain to get hold of.
Obviously I know the advantages of 0 road tax, no MOT, cheaper on fuel (car depending) less to potentially break or go wrong.
So I'm guessing I'd be calming back 20% against all the monthly hire costs, plus all the fuel, work related. Does this work out financially better for tax purposes or would just buying a car outright and then putting the purchase of the car against tax be better?
I've been a sole trader for a good few years now so I know my capital allowance percentage is now much less compared to the first year.
Any tips or info appricated
I'm in the position to either get a 6-7k car outright or go down the lease route. I would ask my accountant but he is a right pain to get hold of.
Obviously I know the advantages of 0 road tax, no MOT, cheaper on fuel (car depending) less to potentially break or go wrong.
So I'm guessing I'd be calming back 20% against all the monthly hire costs, plus all the fuel, work related. Does this work out financially better for tax purposes or would just buying a car outright and then putting the purchase of the car against tax be better?
I've been a sole trader for a good few years now so I know my capital allowance percentage is now much less compared to the first year.
Any tips or info appricated
#2
Scooby Regular
iTrader: (16)
Cany help you with the tax side of business leasing on cars, but if you after a good deal Central car leasing are doing No deposit/Very low deposit lease on some cars at the moment, I got sent through the Mk7 VW Golf GTD on business lease with 0 deposit and £215+vat a month!! but the one that stood out for me was the Audi A3 1.2 TFSI that was 200+vat deposit and £154+vat a month!!
#7
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Isn't it more efficient to buy the car personally and then claim the 45p / 25p per mile as a tax exempt expense?
Rather than the effort of putting the car purchase / lease through the business?
http://www.hmrc.gov.uk/manuals/bimmanual/bim75005.htm
Rather than the effort of putting the car purchase / lease through the business?
http://www.hmrc.gov.uk/manuals/bimmanual/bim75005.htm
Last edited by BlkKnight; 18 February 2016 at 03:22 PM.
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#9
Scooby Regular
iTrader: (7)
Isn't it more efficient to buy the car personally and then claim the 45p / 25p per mile as a tax exempt expense?
Rather than the effort of putting the car purchase / lease through the business?
http://www.hmrc.gov.uk/manuals/bimmanual/bim75005.htm
Rather than the effort of putting the car purchase / lease through the business?
http://www.hmrc.gov.uk/manuals/bimmanual/bim75005.htm
#10
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It boils down to:
- how many miles you intend to do
- is the vehicle being solely used for commercial reasons - if it's not you need to pro-rate the expenses (based on mileage)
You need to run some numbers to see if it's worth while.
IE - if you do 12k miles P/A then you can claim £5000 through the mileage scheme.
Private lease the car?
Yes capital is tied up (as it would be if the company purchased the car).
- how many miles you intend to do
- is the vehicle being solely used for commercial reasons - if it's not you need to pro-rate the expenses (based on mileage)
You need to run some numbers to see if it's worth while.
IE - if you do 12k miles P/A then you can claim £5000 through the mileage scheme.
Private lease the car?
Yes capital is tied up (as it would be if the company purchased the car).
Last edited by BlkKnight; 18 February 2016 at 04:35 PM.
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