What's required for leasing a car?

What's required for leasing a car?

Author
Discussion

soxboy

Original Poster:

6,973 posts

232 months

Thursday 27th July 2006
quotequote all
Quick question: If you want to lease a car as a 'business user' what are the criteria?

My current car is on a personal lease which is due to expire next March. I've opted out of employee's company car scheme to take a cash alternative as I think I could get a better car for the money than what the firm offers, plus there are flexibility and tax issues.

At the same time I've set up a business with two others to do property refurbs & conversions for which we are Vat registered, just started out so no accounts, turnover etc as yet, plus it's not my full time job, just when I have time.

Can I lease a car for 'business use' through this business and what questions/ background info/ references would I have to supply?

Eric Mc

123,589 posts

278 months

Thursday 27th July 2006
quotequote all
If the car is leased to the business rather than you it become a Company Car for tax purposes and you will ned to pay additional personal tax under the BIK rules.

I presume you are a director of this new company?

SKR

2,732 posts

249 months

Thursday 27th July 2006
quotequote all
If you can't provide a set of accounts then you will probably be required to give a personal guarentee, all depends on the start up capital and business plan. The other thing to consider is that some leasing companies will not deal with new starts at all, so you will be restricted in who you can deal with.

deva link

26,934 posts

258 months

Sunday 30th July 2006
quotequote all
It seems thoroughly illogical to opt out of your main employers car scheme, but then opt in to your own company.
You'd be paying tax twice - once on the money that your main employer pays, then again by dint of having a company car from your own company!

Phil Hopkins

17,121 posts

230 months

Monday 31st July 2006
quotequote all
deva link said:
It seems thoroughly illogical to opt out of your main employers car scheme, but then opt in to your own company.
You'd be paying tax twice - once on the money that your main employer pays, then again by dint of having a company car from your own company!


Quite.

Why not look at a simple personal contract hire or PCP style finance deal? I can't see any benefit by taking the cash alternative then leasing it through your new start business.