Business lease benefits, BIK explanation
Business lease benefits, BIK explanation
Author
Discussion

Shabaza

Original Poster:

289 posts

125 months

Saturday 7th January 2023
quotequote all
Can someone please explain to me how this works.
I understand the BIK part in terms of costs.
Ie a £50k car at 2% on an EV would amount to £1000 taxable benefit.

But if I was to order a car through a business lease, For example this:
https://leasing.com/independent-brokers/snows-dire...

What would my ltd company save/reclaim in terms of tax efficiencies

Thanks in advance

Fastlane

1,348 posts

245 months

Saturday 7th January 2023
quotequote all
An operating lease is just an expense in your accounts like rent or any other business expense. You can also put through the servicing, tyres, insurance etc. though as expenses too.

It therefore reduces your profit and therefore your corporation tax liability.

Talk to your accountant.