Best lease car deals available?
Discussion
There are some amazing deals on some fabulous cars
E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
NPI said:
ATM said:
blindswelledrat said:
Dave Hedgehog said:
I don't get how those cars are ever "business use only".Last time I looked at similar I worked out that I would pay more in tax than the actual lease price and hence you were effectively paying for the car twice over. Once via the company and once via your tax. Am I missing something?
Welshbeef said:
One of the prettiest cars out there with a glorious v12 what is mpg to like? Heck even non PH people know what an Aston is and given it didn't cost them a fortune in running costs but had the same purchase price as a Bluemotion Golf..
The car is lovely, its your tedious comments in this thread that make me yawn. Welshbeef said:
sidekickdmr said:
jon- said:
Apart from 20k miles for a 4 year lease
Its a weekend toy, would be suprised if I did over 5K a year.
TKH said:
There are some amazing deals on some fabulous cars
E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
I've got 2 leased cars through my business. BIK not applicable, treated as personal expenditure by the accountant.E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
Business lease just means not available to the general public.
-Z- said:
TKH said:
There are some amazing deals on some fabulous cars
E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
I've got 2 leased cars through my business. BIK not applicable, treated as personal expenditure by the accountant.E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
Business lease just means not available to the general public.
jonny996 said:
-Z- said:
TKH said:
There are some amazing deals on some fabulous cars
E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
I've got 2 leased cars through my business. BIK not applicable, treated as personal expenditure by the accountant.E63 £ 450
SL350 £ 400
But despite how attractive BIK kills them so other options
Personally lease contract hire - great but higher figure and VAT UN reclaimable so you would need to take a dividend monthly assuming you own shares and pay tax on divi still costly.
In the end the Co2 and list is the deciding factor and therefore cars like
BMW 640 D M Sport coupe at £ 480 make more sense
As does the 435 d Sport x-drive when it becomes available
In summary BiK and fuel tax on fuel tax complete pain in the arse
Business lease just means not available to the general public.
-Z- said:
I've got 2 leased cars through my business. BIK not applicable, treated as personal expenditure by the accountant.
Business lease just means not available to the general public.
I assume the business is a Ltd and you mean the business leases the vehicles but the user pays the cost.Business lease just means not available to the general public.
If so, your accountant doesn't know the law.
This 'BIK avoidance' has been tested by HMRC in the Courts and the business lost.
PurpleMoonlight said:
I assume the business is a Ltd and you mean the business leases the vehicles but the user pays the cost.
If so, your accountant doesn't know the law.
This 'BIK avoidance' has been tested by HMRC in the Courts and the business lost.
Errr no. If so, your accountant doesn't know the law.
This 'BIK avoidance' has been tested by HMRC in the Courts and the business lost.
If the director lends the co money (directors loan account) and then the company repays this debt to the director by paying the directors personal expenses this is absolutely fine.
It's not BIK avoidance as the director has paid for the lease themselves.
There is no benefit!!
BE57 TOY said:
Errr no.
If the director lends the co money (directors loan account) and then the company repays this debt to the director by paying the directors personal expenses this is absolutely fine.
It's not BIK avoidance as the director has paid for the lease themselves.
There is no benefit!!
The judgement link was posted on PH previously.If the director lends the co money (directors loan account) and then the company repays this debt to the director by paying the directors personal expenses this is absolutely fine.
It's not BIK avoidance as the director has paid for the lease themselves.
There is no benefit!!
If I remember correctly the business tried to argue that the car was leased to the employee because they paid for it, but that failed because the formal lease agreement was with the business.
I would love to lease a car via my Ltd but pay for it personally instead so if this does really work as a BIK avoidance can anyone prove it?
I was under the impression most 'business only' lease deals were also available on a personal basis - the only real difference being the inclusion of VAT on quoted prices. That being the case I can't think of any advantage of taking the company option. If the director is reimbursing the company what advantage does this possibly provide over a personal lease? Does it boil down to availability of business vs personal deals for a given car?
theboss said:
I was under the impression most 'business only' lease deals were also available on a personal basis - the only real difference being the inclusion of VAT on quoted prices.
That isn't the case. I know why some are limited to business only (no doubt someone will!).The lease car I've ordered was £15 extra p/m for a personal customer after VAT is taken into account.
BE57 TOY said:
If the director repays the company for the lease costs and the company isn't reclaiming VAT then I cannot possibly see why there would be a BIK.
I'm going back a bit and of course I can't remember the fine details but I recall seeing a case where a company got stuffed for employers NI contributions on the cars on its books - they were doing something where they genuinely thought they didn't have to pay.matt-ITR said:
theboss said:
I was under the impression most 'business only' lease deals were also available on a personal basis - the only real difference being the inclusion of VAT on quoted prices.
That isn't the case. I know why some are limited to business only (no doubt someone will!).The lease car I've ordered was £15 extra p/m for a personal customer after VAT is taken into account.
It strikes me as odd because there must be more chance of a business going bust than a properly credit checked individual defaulting.
NPI said:
I'm going back a bit and of course I can't remember the fine details but I recall seeing a case where a company got stuffed for employers NI contributions on the cars on its books - they were doing something where they genuinely thought they didn't have to pay.
That sounds more like a straightforward case of a company providing company cars and then not completing a p11d. Okay, I've done some research into this employer/personal lease query.
It doesn't work because the initial lease is between the leasing company and the employer. When the employer then makes the car available for the employee for personal use a BIK tax charge is created.
The BIK can only be mitigated if the employee pays the employer a charge for the personal use element. Anything paid only reduces the value upon which the BIK is charged. So unless the employee is in effect going to pay the employer the full 20% od retail price (or whatever percentage applicable) possibly plus VAT an element of BIK will be payable to HMRC.
The employer then has treat this as a trading receipt presumably.
There is also a £5000 maximum employee contribution offset but I am not sure if that is just of the employer buys the car or to any lease contribution.
It doesn't work because the initial lease is between the leasing company and the employer. When the employer then makes the car available for the employee for personal use a BIK tax charge is created.
The BIK can only be mitigated if the employee pays the employer a charge for the personal use element. Anything paid only reduces the value upon which the BIK is charged. So unless the employee is in effect going to pay the employer the full 20% od retail price (or whatever percentage applicable) possibly plus VAT an element of BIK will be payable to HMRC.
The employer then has treat this as a trading receipt presumably.
There is also a £5000 maximum employee contribution offset but I am not sure if that is just of the employer buys the car or to any lease contribution.
PurpleMoonlight said:
Okay, I've done some research into this employer/personal lease query.
It doesn't work because the initial lease is between the leasing company and the employer. When the employer then makes the car available for the employee for personal use a BIK tax charge is created.
The BIK can only be mitigated if the employee pays the employer a charge for the personal use element. Anything paid only reduces the value upon which the BIK is charged. So unless the employee is in effect going to pay the employer the full 20% od retail price (or whatever percentage applicable) possibly plus VAT an element of BIK will be payable to HMRC.
The employer then has treat this as a trading receipt presumably.
There is also a £5000 maximum employee contribution offset but I am not sure if that is just of the employer buys the car or to any lease contribution.
Are some unscrupulous owners/or naive claiming it is a pool car (which oddly only they can use) or that its only business miles honest as in zero private use.... Do that and get caught that is tax fraud (jail) not tax avoidance legal (ISAs pension relief as well as many others)It doesn't work because the initial lease is between the leasing company and the employer. When the employer then makes the car available for the employee for personal use a BIK tax charge is created.
The BIK can only be mitigated if the employee pays the employer a charge for the personal use element. Anything paid only reduces the value upon which the BIK is charged. So unless the employee is in effect going to pay the employer the full 20% od retail price (or whatever percentage applicable) possibly plus VAT an element of BIK will be payable to HMRC.
The employer then has treat this as a trading receipt presumably.
There is also a £5000 maximum employee contribution offset but I am not sure if that is just of the employer buys the car or to any lease contribution.
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