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

 

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!!

 

I'm currently looking at estates for work purposes, seen the new shape Audi A4 Avant 1.4tfsi sport for £149 + vat and £1000 up front which looked OK. Will have a look at central also.

 

Vauxhall leasing do a specific scheme for sole traders, if a Vauxhall is on your radar.


It makes a big difference if the vehicle is used solely 100% for business use, on tax claimed, otherwise its not that beneficial.

 

There doing the Audi A4 Avant 1.4tfsi with £250+vat deposit and £169.99+vat

 

I have juggled so many numbers with this that my head went dizzy, bottom line is, anything under £250 over 3yrs and you'll be better off than buying a sub£10k car.

You also benefit from having your capital to do with as you see fit.

My 2p worth, take it or leave it.

 

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

 

Try Solent Vehicle Leasing

I have a citreon C1 £600 deposit 18 x £52
10k miles P/A

Makes the scoob feel faster than any other mod possible

 

What about depreciation and any repairs, also the £5/10k of your capital?

 

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).