Business or Personal Lease?

[russ_a]

I've just started as an IT contractor under my own LTD company but due to holidays owed I'm still employed by my previous employer until the end of next month.

I looking for a new car and wondered if I would be accepted for a business lease seeing that my LTD Co only started trading in August.

Thanks

Russ

[Welshbeef]

From what others have stated previously on this from experience you will need years of accounts of your company trading.

Also it may well be cheaper to do it personal as if you do it business then you need to factor in company car tax

[wemorgan]

From my experience it's cheaper to lease personally and pay the VAT than the lease through my business and pay the BIK and NI.

http://www.hmrc.gov.uk/cars/

http://www.hmrc.gov.uk/payerti/exb/a-z/m/mileage-e...

http://www.hmrc.gov.uk/cars/advisory_fuel_current....

[MrsFallon]

Hi Russ, I work in the Business Fleet and Leasing business and as the business is so new that you really want to look at going down the Personal route. Although each company will have a different lending criteria, my experience is that they will really want to see a number of years accounts for the business.

There are at least 3 companies I deal with who will want to see at least 3 years accounts.

[russ_a]

Thanks folks. Thought as much!

[Snollygoster]

Russ,

No harm in giving it a go.

You might be able to get away with doing a business lease, with a directors indemnity. Usually this is for start ups/low profit making companies. Worst they can say is no.

[MrsFallon]

I've sent you an email Russ.