Lease vs personal PCP and mileage

[Naylz82]

Hi all,
First post here.
I sure this has been asked before but not sure if my circumstances have been covered.

Essentially looking at the buying (well PCP) on a personal car and claiming mileage vs leasing a hybrid.

So worked out costs for PCP over the year as follows;
deposit - £1500 (over 4 years so £375)
12x£299 month = £3588
Service - approx £250
Insurance - approx £365
My fuel - approx £600 on current mileage

So total cost to me for a year = £5178
Mileage is only approx 3500 per year so @ 45p mile = £1449 write down on corp tax

Now if I got a passat hybrid with co2 of 35g, and list price of approx £40k over 2 years it would cost the following;

£1250 up front (over 2 years so 1st year cost = £625
12x£330 per month = £3960
Service - assume £250 again
Insurance - assume £365 again
Fuel - assuming 2p/mile on electric as doing short commute = £70/year electric

BIK - £720/year
Electric cost to me - £70

So total cost of lease in 1st year = £5200

So......................question is as its a low co2 emissions vehicle can I claim the full £5200 as an expense against corporation tax? therefore offseting £5200 as opposed to £1449 on my mileage claim?

Also I wont have a £5178 bill for a personal vehicle only bik @ £720 and £70 electric bill?

Sorry if this is long winded and I will run this past my accountant but in the process of changing accountants so though I would get an idea on here first.
Really seems I am missing something here............

Thanks
S.

[northernladuk]

Load of threads on lease vs PCP below. Many will just be discussing the merits, some will be along the lines of your post but not hybrids but I am sure we've done hybrids a couple of times so should be one there.

Get your hands in and have a good rummage and see what you find as the missus likes to say.

https://www.google.co.uk/search?q=le...hrome&ie=UTF-8

[SeanT]

My mileage payments are just coming up to what I bought the car for after a few months And it's a three litre convertible Bangernomics anyone?

[eek]

Load of threads on lease vs PCP below. Many will just be discussing the merits, some will be along the lines of your post but not hybrids but I am sure we've done hybrids a couple of times so should be one there.

Get your hands in and have a good rummage and see what you find as the missus likes to say.

https://www.google.co.uk/search?q=le...hrome&ie=UTF-8

Not quite this is pcp v company lease and we haven’t had one of those as the benefit it kind charges have rarely made it worthwhile

My advice would be to ask what does your accountant say

[stek]

When I was looking at the Tesla Model S I was shocked to discover the electric costs in USA (don't think they have the subsidy) was about $70 a month!

Ok it's fast and heavy but still.....

[northernladuk]

I don't know the rules but it's but don't you lose your no claims after a period of having a company car when you switch back to personal?

[SueEllen]

I don't know the rules but it's but don't you lose your no claims after a period of having a company car when you switch back to personal?

You can do.

You can get some form of note from your company's insurer to say how many accidents you have had while you used the company car.

[washed up contractor]

If you have your own insurance policy and you terminate it either during the period of insurance or at the next renewal date, then, switch to a company insurance policy, you retain any NCBs entitlement under the personal policy for 2 years.

Some ins co's allow 3 years but you wont know until you want insurance in your own name again so Id advise to take a personal policy out no later than 2 years.

[SouthernHarrier]

When I've had a company car both as an employee of a small consultancy and under my Ltd Co the car insurance has remained personal, just paid by a company, so retained my no claims. Don't think there's anything to say a company car has to be insured by a specific company insurance policy, as long as the insurance company is happy with the "who owns it (company)/who's the main driver (you)" status.

[northernladuk]

When I've had a company car both as an employee of a small consultancy and under my Ltd Co the car insurance has remained personal, just paid by a company, so retained my no claims. Don't think there's anything to say a company car has to be insured by a specific company insurance policy, as long as the insurance company is happy with the "who owns it (company)/who's the main driver (you)" status.

I find this a bit incredible but it appears it's possible. It seems Direct Line aren't that bothered about the registered keeper or something. I don't get how the money would be paid to you if you write it off when it's a company asset though. Very strange. As I say after a brief scan it appears to be possible but I'd be looking in to that in a lot more detail if I was about to do it.
Doesn't sit right at all and there are many areas where what is allowed by the insurer isn't by HMRC. That classification of what a van post earlier in the week is a good example.