Leasing a Vehicle from Employer?
Discussion
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?
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?
They would need to check the small print in the lease agreement.
Why would they want to lose money on such a transaction anyway?
Would the third party be completely separate to the company i.e. they were not a connected person.
A connected person would be a director, shareholder, spouse of either, child of either, business partner of either, employee etc etc.
Why would they want to lose money on such a transaction anyway?
Would the third party be completely separate to the company i.e. they were not a connected person.
A connected person would be a director, shareholder, spouse of either, child of either, business partner of either, employee etc etc.
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.
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.
The lease won't be costing £1K / month. Probably nearer £600.
Does the lease allow them to sub lease? I doubt it. Even if you did, you might have trouble insuring it, on the basis that you've leased it off someone who leased it off someone else.
Finally, I'm suspect the taxman would say that a car being leased at £600/month then being sublet to the spouse of an employee for less than £600 was still a BIK for the actual employee, your wife.
Does the lease allow them to sub lease? I doubt it. Even if you did, you might have trouble insuring it, on the basis that you've leased it off someone who leased it off someone else.
Finally, I'm suspect the taxman would say that a car being leased at £600/month then being sublet to the spouse of an employee for less than £600 was still a BIK for the actual employee, your wife.
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