Car finance through company advice please
Discussion
Hi all
I have recently setup my own consultancy company and am looking to lease a new car through it. However I am a bit in the dark as to exactly how much I will save. Am I right in thinking that any car leased via a company can have the lease payments tax deducted ( looking at a range rover evoque so about £400 a month it seems) ? But then this saving is lost through me paying BIK? If so will there be any discernible saving?
Also how will this work for something more exotic? Say a 2 year old audi R8 spyder? Same rules but more or less saving compared to the evoque?
Any help will be much appreciated.
Ps currently drive an e92 M3 and looking to replace it with 2 cars, ideally the above
Thanks guys
I have recently setup my own consultancy company and am looking to lease a new car through it. However I am a bit in the dark as to exactly how much I will save. Am I right in thinking that any car leased via a company can have the lease payments tax deducted ( looking at a range rover evoque so about £400 a month it seems) ? But then this saving is lost through me paying BIK? If so will there be any discernible saving?
Also how will this work for something more exotic? Say a 2 year old audi R8 spyder? Same rules but more or less saving compared to the evoque?
Any help will be much appreciated.
Ps currently drive an e92 M3 and looking to replace it with 2 cars, ideally the above
Thanks guys
Eric Mc said:
As has been mentioned above, do NOT embark on this plan UNTIL you have properly taken into account the personal Income Tax implications of a company car.
The provision of a car by an employer to a director or employee will trigger a taxable Benefit in Kind as well as a Class 1A National Insurance Charge on the company.
You need to factor in these costs before coming to any final decision.
Talk through the permutations with your accountant.
Will do, just wanted to get some benchmark ideas firstThe provision of a car by an employer to a director or employee will trigger a taxable Benefit in Kind as well as a Class 1A National Insurance Charge on the company.
You need to factor in these costs before coming to any final decision.
Talk through the permutations with your accountant.
Eric Mc said:
As has been mentioned above, do NOT embark on this plan UNTIL you have properly taken into account the personal Income Tax implications of a company car.
The provision of a car by an employer to a director or employee will trigger a taxable Benefit in Kind as well as a Class 1A National Insurance Charge on the company.
You need to factor in these costs before coming to any final decision.
Talk through the permutations with your accountant.
Will do, just wanted to get some benchmark ideas firstThe provision of a car by an employer to a director or employee will trigger a taxable Benefit in Kind as well as a Class 1A National Insurance Charge on the company.
You need to factor in these costs before coming to any final decision.
Talk through the permutations with your accountant.
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