Lease Cars Business vs. Personal (Yes, Again!)

[ContractNewbie18]

Hi Guys - I've read on the previous topics here which say no benefit of going through the company, however I'm questioning that based on a) high insurance costs and b) high up front payment.

One question I have is how the BIK percentage/figure is determined?

So I'm looking at:

Option 1: Business - (2 year lease)
Initial payment: £2400
monthly: £141 (vs £170 - whether that is just the VAT took off) - £4,080 (2,040 per annum)
Insurance: £1000
Benefit in Kind: ???

vs.

Option 2: Personal -
putting mileage through the business, lets say 10,000 @ 45p per mile = £4,500 as a personal expense.

thanks

[PhiltheGreek]

One really should refer the specifics to one's accountant. You must have a somewhat dubious driving record if the insurance premium outweighs the BIK though?

This might help though -> HM Revenue & Customs: CCF-Session Ended

[northernladuk]

This is what you pay an accountant for.

[kaiser78]

£1000 insurance

How old are you, 12 ??

[northernladyuk]

What colour is it?

[Wijay@WISAccountancy]

Hi Guys - I've read on the previous topics here which say no benefit of going through the company, however I'm questioning that based on a) high insurance costs and b) high up front payment.

One question I have is how the BIK percentage/figure is determined?

So I'm looking at:

Option 1: Business - (2 year lease)
Initial payment: £2400
monthly: £141 (vs £170 - whether that is just the VAT took off) - £4,080 (2,040 per annum)
Insurance: £1000
Benefit in Kind: ???

vs.

Option 2: Personal -
putting mileage through the business, lets say 10,000 @ 45p per mile = £4,500 as a personal expense.

thanks

BIK is calculated based on list price, CO2 emission etc. You cant claim full VAT either I suggest you speak to your Accountant to understand this.

[northernladuk]

BIK is calculated based on list price, CO2 emission etc. You cant claim full VAT either I suggest you speak to your Accountant to understand this.

I think he's saying say no benefit of going through the company. There is a surprise lol.

[Teejay]

Hi Guys - I've read on the previous topics here which say no benefit of going through the company, however I'm questioning that based on a) high insurance costs and b) high up front payment.

One question I have is how the BIK percentage/figure is determined?

So I'm looking at:

Option 1: Business - (2 year lease)
Initial payment: £2400
monthly: £141 (vs £170 - whether that is just the VAT took off) - £4,080 (2,040 per annum)
Insurance: £1000
Benefit in Kind: ???

vs.

Option 2: Personal -
putting mileage through the business, lets say 10,000 @ 45p per mile = £4,500 as a personal expense.

thanks

Can of worms- better to avoid.

[ladymuck]

The BIK is determined by the type of car.

I didn't think it was worth it for my Aston Martin...