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Business car lease, paid from personal account.

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    Business car lease, paid from personal account.

    Hi All

    I am a contractor, contracting through my own limited company.
    I have found out a great car lease deal which is only available to business users.

    I have two questions here --

    1. its a car with 15% BIK, £21000, 84g co2 ------- would it make sense to get this car on a lease in company name ? (£150 pm)

    2. If it doesn't makes any financial sense to get this car on company, can I still get this car on company name and pay all installments from my personal account. So there is no financial benefit from company, I wanna do this because, this car lease deal is only available to business customers.

    Any help !

    Thanks
    Regards
    M.

    #2
    Have a read of this

    http://forums.contractoruk.com/accou...e-claimed.html

    Comment


      #3
      Originally posted by muds View Post
      I wanna do this because, this car lease deal is only available to business customers.
      You will generally find they are fairly flexible about that. [One of the reasons for business only can be related to consumer credit act]

      Comment


        #4
        Originally posted by ASB View Post
        You will generally find they are fairly flexible about that. [One of the reasons for business only can be related to consumer credit act]
        well unfortunately in this case they are not being

        seems like I have to go for proper company car lease, which might not be any tax efficient.

        Comment


          #5
          Originally posted by muds View Post
          well unfortunately in this case they are not being

          seems like I have to go for proper company car lease, which might not be any tax efficient.
          Are they insisting it is going through an incorporated company ? (Excluding self employed therefore) or that the lessor has to be vat registered ?

          If you lease the car through the company and fully make good the costs you would think there would be no BIK right? Net cost to company nil, everything paid by you.

          Unfortunately whilst this is true with many benefits it is not the case with cars. It is a benefit, the benefit amount needs to be calculated and this is generally reduce by the amount you make good. It may be the case this works out at nil with full reimbursement but there is no certainy. You will have do the figures for the car (it is unlikely there is no benefit).

          I dug this link out for you which may help.

          http://www.taxation.co.uk/taxation/a.../car-confusion

          Comment


            #6
            You've really got to get the fundamental relationship right between personal and business stuff. You just can't be thinking you personally can pay for business kit. You and the business are completely separate. You really have to understand that and the complexities around it.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              I checked with them again it has to be a vat registered company.

              can you guys suggest me a calculator that tells me exact tax figures if I leased a car with 15% bik, and guide me on how to offset it against profits ?

              Comment


                #8
                Your accountant should be your first port of call.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Your accountant should be your first port of call.

                  have I said he sucks ? am better with my calculator than him, all he says is NO for everything,

                  car - no
                  investments - no
                  tax savings -no

                  basically he knows only straight forward stuff

                  Comment


                    #10
                    Originally posted by muds View Post
                    have I said he sucks ? am better with my calculator than him, all he says is NO for everything,

                    car - no
                    investments - no
                    tax savings -no

                    basically he knows only straight forward stuff
                    And you are doing what about that?

                    Resorting to asking a bunch of strangers about something that is pretty complicated and generally not a good idea isn't really the solution.

                    You could try getting a detailed explaination of why he says no to start off with to see if you can make sense of it.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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