Leasing a hybrid car through a limited company

[TheFaQQer]

I am not scrimping. We are perfectly fine on £45,000 per year, however freeing up additional £200 per month with no tax implications makes more sense to me than taking out even more dividends and pay even more tax on them.

The line "I have a family to support and every penny counts" implied that you might be. Whether you are are or aren't fine, you should never let the tax tail rule the dog, IMHO.

[wettowel]

The line "I have a family to support and every penny counts" implied that you might be. Whether you are are or aren't fine, you should never let the tax tail rule the dog, IMHO.

I have a different view on this, but I guess each to their own Thanks for the advice though.

[Hairlocks]

What is your total mileage each year, and how much of that is business mileage.

[wettowel]

What is your total mileage each year, and how much of that is business mileage.

It's around 10k, none of it is business

[WTFH]

In your figures, please recheck your VAT. The first section you have quoted the car costs ex VAT, then put in an additional VAT reclaim.
Also you have included NICs for BIK in the top, but ignored them in the bottom.

I suspect that if you sent figures like this through to your accountant, they aren’t going to tell you what you want to hear.

So, while you are doing a recalculation, please add in servicing costs and insurance costs for the electric car.

Also, if you are supposed to be trying to save money, why are you wasting it by changing your car every 2 years? If you were serious about saving money, buy a 1 year old GTE for £5k less.

[wettowel]

In your figures, please recheck your VAT. The first section you have quoted the car costs ex VAT, then put in an additional VAT reclaim.

Sorry, maybe I should have been more clear - the figures in my calculation do not include VAT. So while the turnover is my example is £100,000, there is £20,000 in VAT as well.

Also you have included NICs for BIK in the top, but ignored them in the bottom.

I am not sure what do you mean - there is no BIK liability when leasing personally.

So, while you are doing a recalculation, please add in servicing costs and insurance costs for the electric car.

This shouldn't make much difference, as I my current car is super expensive to insure and service.

Also, if you are supposed to be trying to save money, why are you wasting it by changing your car every 2 years? If you were serious about saving money, buy a 1 year old GTE for £5k less.

How is that going to save me money?

Cheers