Business lease with a part-time business

[gmaz]

I'm semi-retired, running my own Ltd company that brings in about £14K pa for the few hours work that I do a month.

Based on this low income from the business (I have other income streams BTW) would a business lease of a new car be practical in any way that will not annoy my accountant or HMRC? I wouldn't be doing any business mileage as I work from home.

What would happen if I was forced to close the company before the lease was up?

[ADJimbo]

gmaz said:

I'm semi-retired, running my own Ltd company that brings in about £14K pa for the few hours work that I do a month.

Based on this low income from the business (I have other income streams BTW) would a business lease of a new car be practical in any way that will not annoy my accountant or HMRC? I wouldn't be doing any business mileage as I work from home.

What would happen if I was forced to close the company before the lease was up?

The only person who can answer this definitively will be your accountant. On the assumption that you want to lease a vehicle through your small Ltd. Co. as a company vehicle, then make sure you understand the company car tax liability you’ll be hit with. It could be substantial.

Whether or not you’ll find a manufacturers financial underwriter that will actually business lease to your Ltd. Co on such low financial numbers, with no real business case use scenario, remains to be seen.

Edited by ADJimbo on Thursday 23 January 16:59

Edited by ADJimbo on Thursday 23 January 17:00