Best m5 lease rates at the moment?

[Jonny TVR]

NORTS said:

How do people get around the BIK tax on these business deals? As they look very enticing until you workout the loss in tax.

You would never do it as a company car. You would do a personal lease and charge the company per mile

[Burwood]

some deals are only available through a company so what some posters were doing is have the lease in x ltd and the direct debt from their personal account. i guess, talk to your accountant. If i did lease a car i'd do as Jonny said above

[NORTS]

Jonny TVR said:

You would never do it as a company car. You would do a personal lease and charge the company per mile

Yes I understand that but the advertised deals are business only. The M5 personal lease deals are no where near as good.

[NORTS]

Burwood said:

some deals are only available through a company so what some posters were doing is have the lease in x ltd and the direct debt from their personal account. i guess, talk to your accountant. If i did lease a car i'd do as Jonny said above

You would have to declare it as a company asset which would mean BIK tax, I've spoken to my accountant about it previously.

Not as easy as what Johnny said because the personal deals are a long way off.

[Burwood]

NORTS said:

Burwood said:

some deals are only available through a company so what some posters were doing is have the lease in x ltd and the direct debt from their personal account. i guess, talk to your accountant. If i did lease a car i'd do as Jonny said above

You would have to declare it as a company asset which would mean BIK tax, I've spoken to my accountant about it previously.

Not as easy as what Johnny said because the personal deals are a long way off.

That is your accountants opinion. I don't know for sure but it is not an asset. There is no ownership interest and no cash outlay and in fact no record on the books of the company. If the company pays the lease and the employee/dir pays the company back there will be BIK because teh BIK is calculated on the list price i.e 70k not a lease cost. Like most things in life, you take your chances

[silverous]

NORTS said:

Yes I understand that but the advertised deals are business only. The M5 personal lease deals are no where near as good.

They are pretty much identical as far as I can tell (other than VAT being added) ?

https://www.contracthireandleasing.com/car-leasing...

[forest172]

They let me have the business users only based on me being a company director. But everything is done though my personal account, so no BIK from work. I just charge business miles back to myself at .45p per mile

[Burwood]

forest172 said:

They let me have the business users only based on me being a company director. But everything is done though my personal account, so no BIK from work. I just charge business miles back to myself at .45p per mile

sweet

[Jonny TVR]

NORTS said:

Yes I understand that but the advertised deals are business only. The M5 personal lease deals are no where near as good.

When I took out the lease on mine there wasn't a big difference.

[Jonny TVR]

forest172 said:

They let me have the business users only based on me being a company director. But everything is done though my personal account, so no BIK from work. I just charge business miles back to myself at .45p per mile

Think that's the first 10k a year then it changes to .26 mile

[NORTS]

forest172 said:

They let me have the business users only based on me being a company director. But everything is done though my personal account, so no BIK from work. I just charge business miles back to myself at .45p per mile

That's good to know. Hmmm!

[silverous]

Jonny TVR said:

When I took out the lease on mine there wasn't a big difference.

There is *no* difference Add VAT onto Eastern's business deal and you get the personal deal they are offering.

[theboss]

Burwood said:

NORTS said:

Burwood said:

some deals are only available through a company so what some posters were doing is have the lease in x ltd and the direct debt from their personal account. i guess, talk to your accountant. If i did lease a car i'd do as Jonny said above

You would have to declare it as a company asset which would mean BIK tax, I've spoken to my accountant about it previously.

Not as easy as what Johnny said because the personal deals are a long way off.

That is your accountants opinion. I don't know for sure but it is not an asset. There is no ownership interest and no cash outlay and in fact no record on the books of the company. If the company pays the lease and the employee/dir pays the company back there will be BIK because teh BIK is calculated on the list price i.e 70k not a lease cost. Like most things in life, you take your chances

I've covered this on the general lease thread and Burwood is right. Some suggest you can lease 'through' the company but apportion the lease payments including VAT to the director's loan account or essentially reimburse the company. It makes no difference. If the business is a party to the lease contract. and the car is made available to an employee or director, then BIK is due. These arrangements have been tested in court and company directors have had their arses handed to them. On an M5 it would be ludicrous - you'd be paying tax on what is deemed to be an extra £27k of taxable benefit, per annum, for a standard spec car.

[kippaxking]

silverous said:

kippaxking said:

Yes but the Eastern £630/month deal involves a £10k deposit. The deals are nowhere near as good as 12 months ago.

How on earth do you get 10k? It is 6x monthly payments, monthly payments are £630 inc vat, so that would be £3780 unless I'm very much mistaken !??

I was looking at the Eastern BMW Website:
Figures

BMW Select finance example for a M5 Saloon

Monthly Payment £629.00
Term of Agreement 48 months
Annual Mileage 10,000 miles
Customer Deposit £10,799.00
Retailer Deposit Contribution £5,812.00
BMW UK deposit contribution £2,500.00
BMW FS deposit contribution £1,500.00
Total Deposit £20,611.00
On the road cash price* £73,970.00
Total Amount of credit £53,359.00
Rate of interest (fixed) 0.00% Fixed
Option to purchase fee^ £1.00
Optional final payment^ £23,796.00
Total amount payable £73,971.00
APR 0.0% APR
Excess mileage charge 15.47 pence

I didn't get my current car from them but thought they were usually competitive.

[PGNCerbera]

NORTS said:

How do people get around the BIK tax on these business deals? As they look very enticing until you workout the loss in tax.

Have an LLP

[PGNCerbera]

[HoHoHo]

PGNCerbera said:

NORTS said:

How do people get around the BIK tax on these business deals? As they look very enticing until you workout the loss in tax.

Have an LLP

Good idea however needs good advice and not simple for some businesses my accountant tells me

[ds666]

How does having an LLP avoid benefit in kind ?

[silverous]

kippaxking said:

I was looking at the Eastern BMW Website:
Figures

BMW Select finance example for a M5 Saloon

Monthly Payment £629.00
Term of Agreement 48 months
Annual Mileage 10,000 miles
Customer Deposit £10,799.00
Retailer Deposit Contribution £5,812.00
BMW UK deposit contribution £2,500.00
BMW FS deposit contribution £1,500.00
Total Deposit £20,611.00
On the road cash price* £73,970.00
Total Amount of credit £53,359.00
Rate of interest (fixed) 0.00% Fixed
Option to purchase fee^ £1.00
Optional final payment^ £23,796.00
Total amount payable £73,971.00
APR 0.0% APR
Excess mileage charge 15.47 pence

I didn't get my current car from them but thought they were usually competitive.

That *isn't* a lease....this thread is about least rates and my link and reference to Eastern was to a lease deal. Why you'd want to put 10k in and be committed to 4 years I don't know...I guess if you wanted to buy it.....

[silverous]

Guys, should we keep the BIK/LLP/Company discussion in the general lease threads - if you search it has been done to death, the idea of this thread is m5 lease rates?