Car Leasing - Business or Personal?

[Original Poster]

So after doing some research about leasing a car it seems like for me personally, it works out very well so if the PH millionaires can refrain from telling me to buy cash I'd appreciate it.

I own a VAT registered Ltd company so the option is there to lease business, however as I have never looked into it before I don't know the implications.

It would appear I can claim back up to 50% of the VAT on the monthly payments which is good, are there any other benefits or downfalls? The prices quoted seem to be better on the business option.

My budget is up to £350 a month.

Probably looking at a 24 month lease however would happily consider 36. 10,000 miles PA is also more than enough for me, I currently do around 6000.

[versus]

If you claim back the VAT then do you have to use the car for 100% business only?

[Original Poster]

versus said:

If you claim back the VAT then do you have to use the car for 100% business only?

I don't know.

I read somewhere that you can claim up to 50% of the VAT so I would assume that you can only claim to be using the car for business use up to 50% of the time. Realistically it would be used 60/40 business/personal.

[Bobby_Mac]

From what I remember from having my LTD company, it worked out far better for you to lease the car rather than have the company buy it.

If its private you can still claim your 40p a mile tax free whereas if you put it through the company you will be taxed on it personally and also the petrol and your limited company would pay the national insurance on top of this as well which IIRC was another 12%