Daft (probably) question about leasing
Discussion
Hello forum!
To the point - I can take cash or lease car from the company I work for. I like leasing.
However, when I have looked at lease cars (Porsche Cayman) it's very expensive £1000+ per month. I can personal lease the same car for around £700 (although the latter does require my own insurance).
Am I missing something? I'm guessing tax implications?
In short - why wouldn't I take the cash and private lease? Why would the massive company I'm a drone at not get much better rates than I could?
To the point - I can take cash or lease car from the company I work for. I like leasing.
However, when I have looked at lease cars (Porsche Cayman) it's very expensive £1000+ per month. I can personal lease the same car for around £700 (although the latter does require my own insurance).
Am I missing something? I'm guessing tax implications?
In short - why wouldn't I take the cash and private lease? Why would the massive company I'm a drone at not get much better rates than I could?
Welcome to PH 
If by lease through work you mean a company car, you don't pay the lease, your workplace will. It is a work benefit and as such you will pay benefit in kind (BIK) through your tax for this benefit. This is calculated from list price of vehicle, co2 levels and your tax band.
Lots of websites out there (inc. HMRC) will help you work out what BIK you will pay, but it my experience it is significantly cheaper to have a company car than have a personal or business lease deal yourself.
Company car will usually be fully maintained also, so no maintenance costs, VED or insurance to pay.
That Cayman probably just got a whole lot cheaper (should you be able to get one as a company car).
If by lease through work you mean a company car, you don't pay the lease, your workplace will. It is a work benefit and as such you will pay benefit in kind (BIK) through your tax for this benefit. This is calculated from list price of vehicle, co2 levels and your tax band.
Lots of websites out there (inc. HMRC) will help you work out what BIK you will pay, but it my experience it is significantly cheaper to have a company car than have a personal or business lease deal yourself.
Company car will usually be fully maintained also, so no maintenance costs, VED or insurance to pay.
That Cayman probably just got a whole lot cheaper (should you be able to get one as a company car).
Edited by giger on Friday 19th September 22:10
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