Car Contract Hire

[Cooperinliverp00l]

Thanks all got hold of my accountant. There are some benefits of putting it through LTD co but with current situation and the fact i can't claim VAT back as i'm on FRS scheme she said that i would be better off having it as private and then claiming my 40p / 25p millage. The claim for this alone will pay for the lease each year.

Going to wait until after this weekend as car prices should come down with the arrival of the new plate. might pick myself up a 1/2 year bargain

Thanks for all your valued advice and help.

[Archangel]

Remember there is also Emp NI @ flat rate of 12.8%

No, I'd forgotten that! Another nail in the coffin.

[Fred Bloggs]

No, I'd forgotten that! Another nail in the coffin.

My conclusion too. Non-starter.

[css_jay99]

I am in similar situation, trying to see if I should lease.

From all said here looks like leasing via the company is by no means tax effective.

Leasing personally is not worth it either. Looks like its best to Buy a 2/3 yr old car and claim the business mileage, put the profits (mileage allowance - (fuel & maintenance costs)) in a ISA account. That amount in the bank after 3 yrs will probably equate to the depreciation on the car when it comes to resale.

Or better still, Borrow the money on 1yr 0% Transfer, the mileage claim will be more than enough to pay off the loan.

Any logic to my madness ?

css_jay99

[monkeyboy]

I drive a company van

My accountants said that no justification is required as long as you pay the BIK no problem its not up to inland revenue to say whether you need one or not.

I have a merc vito I actually do no business milage at the mo as I take the train but if you claim full fuel alloance you do not have to say how much mileage is business and how much is private. And the current vans are quite nice.

Only one problem is mine in a dual liner ie rear seats doesn't exactly meet the criteria for a van but have removable bulk head if they want to inspect

As far as dvla is concerned it is a van

[Hiram King Of Tyre]

I got a nice gas guzzling Nissan Navara van.