Leasing... Business or Personal? Pls help!
Discussion
After a bit of advice guys (and apologies as I think this has been covered in threads gone by).
I own my own limited company as a contractor for a bank. I’ve always run used cars, but with an expanding family etc have decided to get something new, and leasing appeals as I get an itchy foot after a year or two and fancy a change. I was looking at the new slk but with the possibility of new hellspawn, it’s probably pertinent to go for a C-class estate with a bit of oomph or something as MB are chucking out good deals.
Anyways, despite reading the jargon I still can’t work out whether it is better to do a personal lease or a business lease? The car will be used for a commute to the station and then just weekend personal driving… so the business lease says e.g £250+VAT and the personal lease says more like £330 inc VAT,
What are the benefits to either? Am wondering if personal is easier if the saving is negligible as the BIK type-stuff is a headache?
Any help would be appreciated, my accountant hasn’t responded and frankly you lot are wiser.
I own my own limited company as a contractor for a bank. I’ve always run used cars, but with an expanding family etc have decided to get something new, and leasing appeals as I get an itchy foot after a year or two and fancy a change. I was looking at the new slk but with the possibility of new hellspawn, it’s probably pertinent to go for a C-class estate with a bit of oomph or something as MB are chucking out good deals.
Anyways, despite reading the jargon I still can’t work out whether it is better to do a personal lease or a business lease? The car will be used for a commute to the station and then just weekend personal driving… so the business lease says e.g £250+VAT and the personal lease says more like £330 inc VAT,
What are the benefits to either? Am wondering if personal is easier if the saving is negligible as the BIK type-stuff is a headache?
Any help would be appreciated, my accountant hasn’t responded and frankly you lot are wiser.
From my accountant's calculation a personal lease is cheaper.
I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
wemorgan said:
From my accountant's calculation a personal lease is cheaper.
I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
Cheers I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
carparkno1 said:
kiethton said:
Not a MB but there were a fair few sub £200pm personal leases for the new Octavia VRS floating around this week
In estate form that could be a winner. Cheers. Likely a little more with 10k miles though - maybe £20pm?
With merc the numbers (at the moment) are in favour of bussiness, as the price for personal lease is not just bussiness plus vat like most
Dont know why this is, but before it was just the vat element that was the differance, now it seems to go personal there in an almost 100 pm premium.
Bullit
Dont know why this is, but before it was just the vat element that was the differance, now it seems to go personal there in an almost 100 pm premium.
Bullit
I'm aware that if the lease car is paid for by the company, then there are BIK and NI implications but would it be possible to take out a business lease and pay for it directly from personal money?
The company would not be paying a penny for it, therefore there would be no BIK implications.
Would HMRC have anything to say about such an arrangement?
The company would not be paying a penny for it, therefore there would be no BIK implications.
Would HMRC have anything to say about such an arrangement?
wemorgan said:
From my accountant's calculation a personal lease is cheaper.
I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
Just to be clear, when you say that servicing would be an allowance expense I assume this is if the OP was to take out a business lease?I'm on the VAT flat rate scheme so no VAT savings are possible.
Also the BIK, plus employer NI contributions add to the expense.
You'd no longer be able to claim the 45ppm mileage.
Fuel, insurance, servicing would be allowable expenses.
That's not the full picture, but you get the gist.
When using your personal car and claiming 45ppm I assume that you are not allowed to claim any other expenses related to the car e.g. tyres, services etc as it is rolled into the 45ppm?
topless_mx5 said:
Just to be clear, when you say that servicing would be an allowance expense I assume this is if the OP was to take out a business lease?
When using your personal car and claiming 45ppm I assume that you are not allowed to claim any other expenses related to the car e.g. tyres, services etc as it is rolled into the 45ppm?
Yes, as a business lease service is an allowable business expenseWhen using your personal car and claiming 45ppm I assume that you are not allowed to claim any other expenses related to the car e.g. tyres, services etc as it is rolled into the 45ppm?
Yes, if you claim the 45ppm when the car is a personal lease then no further car wear and tear allowances are on offer.
If you lease wisely then the 45ppm just about covers the lease and fuel costs.
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