Best lease car deals available?
Discussion
Fiesta Zetec S 140 Red/Black Edition
3 + 23 sub £150 a month seems a decent deal
http://www.contracthireandleasing.com/car-leasing-...
3 + 23 sub £150 a month seems a decent deal
http://www.contracthireandleasing.com/car-leasing-...
greggy50 said:
Fiesta Zetec S 140 Red/Black Edition
3 + 23 sub £150 a month seems a decent deal
http://www.contracthireandleasing.com/car-leasing-...
I sat in one on Sunday at a local dealer - personally I couldn't live with it didn't like its looks really in real live v in magazines3 + 23 sub £150 a month seems a decent deal
http://www.contracthireandleasing.com/car-leasing-...
greggy50 said:
Welshbeef said:
I sat in one on Sunday at a local dealer - personally I couldn't live with it didn't like its looks really in real live v in magazines
Yeah not for me but for a young lad say 19/20 it would be a great deal for a low insurance car with a bit of pokeBlown2CV said:
I didn't say personal loan, I was actually thinking you were on about a director's loan. In any case if you're paying out your personal account, what makes that anything to do with the company, director or not? Also you're directly linked to the car, how is there no paper trail as you're saying?
That's the point. I agree there's no paper trail so the only documentation tying it to a "business lease" is the actual lease agreement with the manufacturer.
Snollygoster said:
Blown2CV said:
I didn't say personal loan, I was actually thinking you were on about a director's loan. In any case if you're paying out your personal account, what makes that anything to do with the company, director or not? Also you're directly linked to the car, how is there no paper trail as you're saying?
That's the point. I agree there's no paper trail so the only documentation tying it to a "business lease" is the actual lease agreement with the manufacturer.Blown2CV said:
N88 said:
AGK said:
VW have always had good prices for leasing these but you have to prove you have a business.
Once you add BIK it isn't that attractive.
Except you wouldn't provide it to the director as a company car, it would just be a £165 payment to their loan account.Once you add BIK it isn't that attractive.
Also wouldn't apply to the self employed.
Edited by N88 on Monday 29th September 12:52
ps. Try being a little less aggressive with your posts in future
N88 said:
Blown2CV said:
N88 said:
AGK said:
VW have always had good prices for leasing these but you have to prove you have a business.
Once you add BIK it isn't that attractive.
Except you wouldn't provide it to the director as a company car, it would just be a £165 payment to their loan account.Once you add BIK it isn't that attractive.
Also wouldn't apply to the self employed.
Edited by N88 on Monday 29th September 12:52
ps. Try being a little less aggressive with your posts in future
Thankyou4calling said:
BUGGER!
Just seen this deal from Freedom.
I've just taken delivery of an E Class convertible and at the time the CLS was £200 more.
Mercedes CLS250 CDI AMG Sport 4Dr Coupe AutoDelivery time2 weeksMetallic
Leather
Comand
18'' Alloys
Business deal£288.99+VAT per monthPersonal deal £379.19 inc VAT per month
Fantastic deal I think.
Got a link? I'm struggling to find something to replace my E Class coupe, although I'm not sure the 250 would have enough poke for me.Just seen this deal from Freedom.
I've just taken delivery of an E Class convertible and at the time the CLS was £200 more.
Mercedes CLS250 CDI AMG Sport 4Dr Coupe AutoDelivery time2 weeksMetallic
Leather
Comand
18'' Alloys
Business deal£288.99+VAT per monthPersonal deal £379.19 inc VAT per month
Fantastic deal I think.
N88 said:
Blown2CV said:
N88 said:
AGK said:
VW have always had good prices for leasing these but you have to prove you have a business.
Once you add BIK it isn't that attractive.
Except you wouldn't provide it to the director as a company car, it would just be a £165 payment to their loan account.Once you add BIK it isn't that attractive.
Also wouldn't apply to the self employed.
Edited by N88 on Monday 29th September 12:52
ps. Try being a little less aggressive with your posts in future
Look at the timescales in that case - HMRC are digging back into the directors' affairs and use of vehicles over a 10 year period. Add the time and effort in participating in HMRC's investigations, mounting a defence to their claims, appealing to the tribunal etc. I'm astounded that anyone thinks its worth those risks now and 10+ years down the road, just to save a few quid a month on a company vs personal lease deal. I couldn't sleep at night if I were doing this.
Good luck to your clients if they ever get investigated for it...
OK Lease wizards, anything good on an A3 1.8T Sportback S-Line? I'd prefer an Octavia vRS or a Golf GTi but the car will be driven by my wife as much as me and I like sex so I better get the Audi.
I need to replace my co-car in April so when should I start seriously looking if I go down the lease route?
Steve
I need to replace my co-car in April so when should I start seriously looking if I go down the lease route?
Steve
Have to be subscribed to read it, here it is...
Company cars - new tax rules
In February 2014 the Upper Tax Tribunal ruled that a scheme which involved leasing cars to employees to reduce the benefit in kind tax was valid. Can your company use a similar arrangement to lower the tax on your company car?
Car scheme recap
Back in 2013 we told you about Apollo Fuel’s scheme to reduce the taxable benefit in kind (BiK) for its company cars ( yr.14, iss.20, pg.3 , see The next step ). It rented cars to its employees at a rate that took account of each vehicle’s actual value rather than, as the company car rules usually require, its brand new list price. Naturally, HMRC objected, but both the Lower and Upper Tax Tribunals ruled the scheme worked. Sadly, the victory was short lived.
New rule - trap for lease schemes
Even before the latest tribunal ruling HMRC had persuaded the government to change the rules because the scheme, while seemingly fair, might lead to it losing out on tax. From 6 April 2014 if a company provides a director or employee with a car through a lease/rent arrangement, the normal BiK rules apply, i.e. the tax and NI charges are worked out according to the car’s CO2 emissions and its list price when new.
Trap. The new rule applies to existing lease/rent arrangements, as well as those started after 5 April 2014. If your company is using this type of arrangement solely to reduce tax and NI liabilities, it would be wise to end it now to avoid getting caught in further tax traps.
New rule - first trap for contributions
The amount on which a director or employee is taxed on their company car is reduced where the company requires them to make a contribution towards its running costs. The bad news is that rental payments made under a lease arrangement don’t qualify for the tax reduction.
Tip. Instead of charging rent your company can ask its car drivers to pay the same amount as a contribution towards running costs. Put this in writing. The effect will be to reduce the amount on which they are taxed. For example, if the company car BiK for a director is £5,000 per year and the director pays £1,800 towards costs, the taxable amount is reduced to £3,200.
Second trap for contributions
A second new rule was introduced from 6 April 2014 relating to the timing of contributions. Before this the BiK for cars could be reduced by contributions made after the end of the tax year, i.e. the tax charge could be reduced retrospectively. But now contributions will only affect the tax charge for the year in which they are paid.
Trap. You might not be too worried about the new rule on the assumption that if a contribution isn’t knocked off the tax charge for one year it will come off the next. But because of the way the rule is written we think HMRC can argue that a contribution relating to a previous year won’t count as a reduction for it (because of the new rule) or for the year in which it is paid.
Tip. To counter the trap amend employment contracts and company car policies to say that payments made toward running costs will be applied to the tax year in which they are paid (see The next step ).
Lease/rental schemes of the type considered by the tribunal were made ineffective for tax purposes from 6 April 2014. Your company should end this type of scheme and instead of rent charge the same amount as a contribution to the cost of providing the car - the taxable car benefit will then be reduced accordingly.
Company cars - new tax rules
In February 2014 the Upper Tax Tribunal ruled that a scheme which involved leasing cars to employees to reduce the benefit in kind tax was valid. Can your company use a similar arrangement to lower the tax on your company car?
Car scheme recap
Back in 2013 we told you about Apollo Fuel’s scheme to reduce the taxable benefit in kind (BiK) for its company cars ( yr.14, iss.20, pg.3 , see The next step ). It rented cars to its employees at a rate that took account of each vehicle’s actual value rather than, as the company car rules usually require, its brand new list price. Naturally, HMRC objected, but both the Lower and Upper Tax Tribunals ruled the scheme worked. Sadly, the victory was short lived.
New rule - trap for lease schemes
Even before the latest tribunal ruling HMRC had persuaded the government to change the rules because the scheme, while seemingly fair, might lead to it losing out on tax. From 6 April 2014 if a company provides a director or employee with a car through a lease/rent arrangement, the normal BiK rules apply, i.e. the tax and NI charges are worked out according to the car’s CO2 emissions and its list price when new.
Trap. The new rule applies to existing lease/rent arrangements, as well as those started after 5 April 2014. If your company is using this type of arrangement solely to reduce tax and NI liabilities, it would be wise to end it now to avoid getting caught in further tax traps.
New rule - first trap for contributions
The amount on which a director or employee is taxed on their company car is reduced where the company requires them to make a contribution towards its running costs. The bad news is that rental payments made under a lease arrangement don’t qualify for the tax reduction.
Tip. Instead of charging rent your company can ask its car drivers to pay the same amount as a contribution towards running costs. Put this in writing. The effect will be to reduce the amount on which they are taxed. For example, if the company car BiK for a director is £5,000 per year and the director pays £1,800 towards costs, the taxable amount is reduced to £3,200.
Second trap for contributions
A second new rule was introduced from 6 April 2014 relating to the timing of contributions. Before this the BiK for cars could be reduced by contributions made after the end of the tax year, i.e. the tax charge could be reduced retrospectively. But now contributions will only affect the tax charge for the year in which they are paid.
Trap. You might not be too worried about the new rule on the assumption that if a contribution isn’t knocked off the tax charge for one year it will come off the next. But because of the way the rule is written we think HMRC can argue that a contribution relating to a previous year won’t count as a reduction for it (because of the new rule) or for the year in which it is paid.
Tip. To counter the trap amend employment contracts and company car policies to say that payments made toward running costs will be applied to the tax year in which they are paid (see The next step ).
Lease/rental schemes of the type considered by the tribunal were made ineffective for tax purposes from 6 April 2014. Your company should end this type of scheme and instead of rent charge the same amount as a contribution to the cost of providing the car - the taxable car benefit will then be reduced accordingly.
gizlaroc said:
There is nothing stopping 'your' company leasing the car back to you as a personal deal.
I argued this with HMRC a couple of years ago, and they said on the phone that although it seemed like a tax dodge, which it was, they couldn't work out if anything was actually wrong with it.
The phone call was very honest, I told them what I wanted to do, and they were laughing about it and said they couldn't think of any legal reason why not, they said it was annoying, but seemed legit.
If my company hire a car for £300 a month plus vat, and then hires it out to me at £500 a month including vat, it only has to pay the vat (if registered) on the profit it makes, if however it decides to hire it back to me at £360 a month there is no profit, it has cost the company nothing, it has made them nothing, nothing is owing.
Are you talking about 'your' company leasing it to you as though you were a customer, rather than you as an employee?I argued this with HMRC a couple of years ago, and they said on the phone that although it seemed like a tax dodge, which it was, they couldn't work out if anything was actually wrong with it.
The phone call was very honest, I told them what I wanted to do, and they were laughing about it and said they couldn't think of any legal reason why not, they said it was annoying, but seemed legit.
If my company hire a car for £300 a month plus vat, and then hires it out to me at £500 a month including vat, it only has to pay the vat (if registered) on the profit it makes, if however it decides to hire it back to me at £360 a month there is no profit, it has cost the company nothing, it has made them nothing, nothing is owing.
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