Business Car Lease Cancellation - How Hurtful?

[DSLiverpool]

Before I ask them I thought I would ask the PH massive, we no longer need a 2012 BMW 116d that's 12 months into a 3 year business lease.

Anyone got any experience of cancelling a lease ?

Note:
Business not personal

[jonny70]

not trying to hijack your thread as I dont know answer to your question
What are the tax implications of having a 1 series (like urs )in a limited company?

[DocArbathnot]

Speak to the lease co. A typical penalty for an early handback would be 70%. However it's probably an unregulated agreement so they can charges can vary.

[DSLiverpool]

jonny70 said:

not trying to hijack your thread as I dont know answer to your question
What are the tax implications of having a 1 series (like urs )in a limited company?

If you mean the member of staff who used the car paid circa £40 a month, if you mean to the company not sure there is one if there is its negligible.

[johnfm]

DSLiverpool said:

jonny70 said:

not trying to hijack your thread as I dont know answer to your question
What are the tax implications of having a 1 series (like urs )in a limited company?

If you mean the member of staff who used the car paid circa £40 a month, if you mean to the company not sure there is one if there is its negligible.

If your fleet is low CO2 I think you can take advantage of salary sacrifice schemes, where the employees car payments are made from pre-tax income. The employer, therefore, saves on employers NI.

Can be substantial on big fleets.

[P-Jay]

It'll vary from company to company, but I would imagine "very" would be the short answer.