Company car lease contibutions ?

[Noger]

Just a ponder really. Car Leases via a company are often quite a bit cheaper than Personal Leases.

If MyCo leased a car, could I then pay back the lease charges ? Or perhaps net off against 40p a mile expenses ?

[Eric Mc]

If your company leased a car and you drove it for both business and private purposes, it would become a company car subject to Benefit in Kind rules.
If the compamy also bought the fuel for the car, then you would be chargeable to BIK on the fuel too and you would not be able to make any mileage claims.
If the company doesn't pay for the fuel, you could make mileage claims but they would be much less than the 40p per mile rate.

Mileage rates for company cars range betwreen 10p and 18p per mile depending on the size and type of the engine.

I am assuming when you said "my company" that you were talking about a company of which you are a director.

[Noger]

Yes, I am wondering if it is possible to take advantage of the cheaper business lease rates, without having the BIK implications.

Thought I might be able to contribute 100% of the lease. But perhaps not.

[Deva Link]

Business leases are not generally cheaper - they're just quoted without VAT. On quite a few leasing company websites it says just to add the VAT for personal deals.

Some manufactueres subsidise lease deals from time to time and they're sometimes business onlt.

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Deva Link said:

Business leases are not generally cheaper - they're just quoted without VAT. On quite a few leasing company websites it says just to add the VAT for personal deals.

Some manufactueres subsidise lease deals from time to time and they're sometimes business onlt.

What he said. The only difference is the VAT, if they are charging more then look elsewhere.