Reply to: Lease vs personal PCP and mileage

[ContrataxLtd]

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.

This is definitely possible, I've done it myself as it worked out much cheaper to keep a personal policy with associated NCB then take out a policy in the company name. You do have to ensure the tax treatment is done correctly though, normally the payment has to go through payroll and TAX/NI deducted accordingly as the company is effectively settling a personal liability (the insurance premiums) but sometimes just via the P11d as a BIK.

Martin
Contratax Ltd

[cojak]

And make sure that you put proper security in place and DON'T part-ex your old car if it's more than £5K in value...

[Antman]

I'd run it past your account first before getting too giddy.

Does the missus say that as well?

Soz, I couldn't resist

[northernladuk]

I'd run it past your account first before getting too giddy.

[Naylz82]

Thanks for the advice from all.

Re insurance, not too much of an issue for me, I run other vehicles in the household therefore ncd can be used on other vehicles rather than lost.

Re the 'fair wear and tear' policy, I appreciate they will look for anything to charge me on and fully expect that, however unless I am missing something the savings through leasing a very low co2 emmiting vehicle through the business look massive to my current situation.

[washed up contractor]

If you lease a car, you must be prepared to pay charges for work over and above 'fair wear & tear.' The conditions should be in the lease but you can get an idea from the british vehicle leasing association. They contend an average charge to customers handing their lease car back of around £900.

If the vehicle has more than 2 small dents on any one panel, chargeable. If the vehicle has any scratch more than an inch long on any one panel, chargeable etc. A favourite is damage or scratches under the fron splitter or valance where people park nose onto a kerb etc.

Similar actually applies when you hand a car back on a PCP. Some people say they've never had such charges. good luck to them. Everyone I know who has handed a car back, has had them.

I expect it will get far more common especially with people wanting to get out of diesels due to the current hysteria and, the car's value being a lot lessthan the 'balloon' that was due at the end of the term.

Be very careful if you intend taking on a financed car and intending handing it back instead of keeping it.

[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.

[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.

[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.

[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.

[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?

[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.....

[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

[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?

[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