car leasing

[Ken Adams]

Hi All,

I'm a new contractor. Looking at getting another car on lease (i've had two on lease before). I've always done this as a personal lease, but wondering if there is a benefit to putting through the ltd i've just set up in Jan.

Anyone else have any insight on this?

I have an app form for a personal lease, but it's asking about employment history and how long i've been with current employer etc...

Will it be more difficult to get approved now i'm contracting?

Any help will be much appreciated.

Thanks

[Murder1]

No personal experience but I found the links below which may help. All I know is there are strict rules and you may end up paying a BIK tax

http://forums.contractoruk.com/accou...ontractor.html
HM Revenue & Customs: Cars and motoring expenses: reclaiming VAT

[northernladuk]

You will have to pay BIK on it as it is available for personal use which is most cases makes it not worth doing through the LTD. Better to do it personally and then just claim the 45p per mile up to 10k.

If you still want to do it your accountant is the best bet to speak to.

[Nixon Williams]

I have an app form for a personal lease, but it's asking about employment history and how long i've been with current employer etc...

Will it be more difficult to get approved now i'm contracting?

If you are having a problem due to your employment history, then it is likely that you may encounter a problem with a lease through your new company.

Generally, I would advise against having a lease through the company and would agree with NLUK and claim the mileage at 45p per mile for the first 10,000 miles and 25p thereafter.

Remember this 10,000 mile 'clock' re-sets each 6th April.

[Wanderer]

Will it be more difficult to get approved now i'm contracting?

Can't see why it would, provided you don't have adverse credit rating.

If it's a very low emissions vehicle or a hybrid then talk to your accountant as it might be tax efficient to expense it as a company car, otherwise just do it yourself and claim the mileage at 45p/mile.

[BolshieBastard]

Dont lease a car through your own company unless you want to pay 2 lots of tax on it as an employer and employee.

When you're a permie, you dont see what your employer has to pay. When its your own co, you pay both as employer and employee.

Far better to PCP a car as an individual.