Leasing a Vehicle from Employer?

Leasing a Vehicle from Employer?

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DRFC1879

Original Poster:

3,446 posts

158 months

Monday 13th February 2017
quotequote all
I'm guessing before I get into the meat of this that there is a well-trodden path to close any such loopholes but thought it worth asking if anyone on here may know if this could work:

Mrs 1879 works for a business which has just taken over another regional franchise in the same network. The outgoing owners of the franchise leased a Range Rovers Sport in the company name and it is going to be sitting in a yard with nobody to drive it.

My wife is being made a company director and could take it as a company motor but the tax would be crippling versus her current A180 AMG so I was mulling over ways around this. Does anybody know if it would be possible for her to privately lease the vehicle from the company, therefore excluding it from the company car tax? My layman's guess is that if the lease costs the business £1k pcm and she were to pay them £300 pcm there would still be a taxable benefit in kind of £700 pcm to take into account?

DRFC1879

Original Poster:

3,446 posts

158 months

Monday 13th February 2017
quotequote all
P.S. This just occurred to me: What's to stop a company leasing an asset at a loss to somebody not on their payroll e.g. me?

DRFC1879

Original Poster:

3,446 posts

158 months

Monday 13th February 2017
quotequote all
Thought that would be the case.

So onto scenario 2: The business has an onerous lease on an asset they don't need. Would they be within their rights to recoup some of that outgoing by leasing to a third party at a loss?

DRFC1879

Original Poster:

3,446 posts

158 months

Monday 13th February 2017
quotequote all
I'm not sure that they would want to lose money but if they're tied into paying £1 a month for something to sit in a yard getting shat on by pigeons it may be more beneficial for them to claw back some of the cost.

Just floating ideas really. It's a bit of a pipe dream but if we could get that car for a small outlay it would be a bit of fun.

DRFC1879

Original Poster:

3,446 posts

158 months

Monday 13th February 2017
quotequote all
Yep. All valid points which I fully acknowledge and completely piss on my chips. Back to the grind...