Dave1980

Afternoon All

I am looking into new options and been looking at leasing a car for work. Currently i am self employed sole trader.

Anyone else in this current situation?. Whats the pros and cons of leasing?. Is it something i can claim back through tax at the end of the financial year?

ScoobyWon't

My accountant recommended that I lease my private car to myself, keep a log of my mileage and claim that back at 45p a mile. That way I don't have to worry about company car tax etc.

Dave1980

that is my plan, just not sure what the difference is between leasing and buying in the long run. unless you can claim more back from leasing.

keep a log of mileage already but currently just use my french shed for work but feel like something nice.

ScoobyWon't

In theory you can charge yourself whatever lease amount you want.

If you are leasing from another company/dealership, they may ask for deposits, excess mileage payments etc.

You'd have to do you own maths on which works out most beneficial, I'm afraid.

Dave1980

been looking into it a bit, there is generally an upfront deposit. could be worth a go, will have to have a good look into it.

JohnSmith

Get something pre registered with no deposit and a quid at the end of the lease to transfer title

Loads of deals around at the moment with no penalties and no deposit either especially on pre reg'd vehicles

Dave1980

any particular companies?

DT-SPD

iTrader: (7)

My accountant also advises me to use a private car and claim the mileage, 45p for first 10k.

Please post what deals you have found, I am thinking of getting a new daily driver too

Neanderthal

iTrader: (6)

I too was advised to lease it privately and claim back the mileage I think maybe it's the better way of doing it if your going to use the car equally for private/work use.

JohnSmith

Try these, they fax us almost daily with offers, some are rubbish but some appear very good

http://www.thebestcardeals.co.uk/

MMT WRX

To claim 45p/mile don't you have to be below the VAT threshold as well?

JackTorrence

When you say "claim back" if you are a sole trader you must remember that you are only claiming this back from yourself. You need to do some actual analysis to work out the benefits etc.

You also need to think about the liability if you are a sole trader.

Buying / leasing needs to be assessed and looked at over the term of the lease or economic value of the car. Depending on the lease you can capitalise the car as an asset of the business but this all depends on the terms of the lease.

If you have a good accountant then you will be ok.

Dave1980

ta, will have a good look .

i have a good accountant, my mum was one for 35 years so i pay nothing for my accountant fees either and i am sure she can lose it somewhere for me

ScoobyWon't

Will she do my books for that price too?