Dingdongler

Hi

In terms of contract hire deals on cars that are for business users only, what actually constitutes a business user?

Thanks

Gigsy

One where a business (ltd / Plc) are paying for it usually (rather than simply an employee that's using the car for business purposes)

Jimpreza

The ones I was looking at Ding were the same as a personal just net of VAT. I've just got one on a M3.

Dingdongler

But then if I draw money from the company I attract extra taxation on that money

This stuff really confuses me

Anyway Jim, are you saying you've bought a M3?

Jimpreza

Yes Ding, should be getting delivered next month. I am not 100% sure but I think it depends if you are a sole trader/ltd company. As a sole trader you can but it through as a monthly expense so reduces profits. If you are a Ltd company the hire will reduce profits but then I think you have to pay tax as a benifit in kind. Like I said I am not 100% but my account advised me to do it this way. I am not sure that the Co2's affect what tax relief you get also.

Dingdongler

Thanks Jim and congrats on the new car!!

May I ask what you are paying for the personal contract hire deal on the M3?

Cheers

Jimpreza

http://www.bluechillicars.com/person...2dr-dct-346611

Dingdongler

Thanks Jim.

That's a very good deal actually. Keep us updated when the new car arrives with pics etc

Trout

iTrader: (1)

Company car tax on an M3 will be quite painful!!!

My accountant advised me to buy my car personally.

Obviously your circumstances may differ etc...

Jimpreza

My accountant advised me to put a proportion of the lease through for business use. TBH if I was that bothered about the tax I'd have bought the diesel. As the old saying goes 'you have to pay to play'.

Dingdongler

You are right. Acct had said the same thing to me in the past but I forgot!

Jimpreza

Haha is that why your called Ding

Trout and Ding - Are you trading under Limited Companies, sole trader or partnerships?

Trout

iTrader: (1)

I am a limited company so it would have effectively been a company car.

My company usage would be less than 10% of the annual mileage so overall a poor option.

Dingdongler

Limited company Jim.

Jimpreza

That's why then. You would have to pay the tax on the benefit through a ltd company. As I am a sole trader I can put a percentage of the lease relating to business through the books.

zip106

Sole trader also.
100% of my vehicle goes through my books.

Jimpreza

I put 100% of the business van through and 40% of the car as 60% is personal use.

I take it that's not the Pork Zip.

Trout

iTrader: (1)

When you are a gay model you can claim the car as part of your image

Trout

iTrader: (1)

You can claim relief with a limited company as well, however you need to demonstrate you have done the business miles.

zip106

No Jim, just the pick-up.

I used to put a percentage of the other cars through as I'd sometimes use it to price jobs that were a long way from home.

I don't advertise the fact to my customers that I have a Porsche, so only use the truck now!

Jimpreza

If my hairdresser came round in a truck I'd think it was a bit strange tbh.

Seriously though I put a % through as I take the car when the van isn't required.

mamoon2

Just put it through as a personal contract. Ignore ads that say "business use only", any leasing company will put through a personal contract.

I've just got a Mercedes C220 CDI Coupe Sport in White with black leather, AMG kit, wheels etc for £301 + vat per month.

PM me if you want, we have a contract hire and leasing company in the family

Dingdongler

Thanks. Some of these leasing companies seem a bit suspect to me. I rang three companies today to confirm their prices on a car and none have got back to me. Or perhaps they are just busy?

Do you mind if I ask how much you had to put down for the C220 and what the term of the agreement is?

Thanks

Ricky

Interested in details too !!!!!!!

Cheers !

P1Fanatic

Thats a cracking price for a DCT model esp on a 2yr lease. I pay £275 3+23 on a CTR. Sure when I was looking before M3 prices were circa £800pm.

mamoon2

Sorry for the late reply, not been on much recently.

The deal was 6+23, so 2 year deal and i put down 6 x £301 + VAT as deposit.

There are cheaper ones available just without leather, i've seen £280 + VAT deals knocking about.

Regarding the leasing companies getting back to you.... they are generally waiting on dealers getting back to them if its a stock vehicle. It seems quite common to wait a day or two, however i always stress that i need a call back even if its just to say they are waiting on the dealers.

How it works is, the leasing company have "terms" with manufacturers for say 20% discount (example) and they then order through the dealer network with this discount. When a dealer has excess stock, they send out deals to the leasing companies to shift them

mamoon2

Mine is same as this

Jimpreza

I know mate. I wanted a 3 year deal but for some reason the 2 year deals were sometimes cheaper.