Car Leasing

adms

Hi,

Just wanted alittle advise on what the whole car leasing benefits were. I have my own company and do about 20,000 miles a year. Is it worth my while to have a leased car or should i continue to drive my own and charge 40p a mile and 25p a mile after 10,000 miles.

It's only a small company and we make a profit of around 40-50k.

Thanks

cash99

There really is no quick answer to this one. There are numerous factors involved, including the cost of the car, its CO2 emissions, the companys tax position, your tax position, and without considering all of them you will not get the most tax efficient answer.

Gut feel is that the £6500 you are claiming each year ( which only costs your company £5265 after tax) is a good arrangement.

Ask your accountant to run the numbers.

barney1

you can get a quote for company car tax on http://www.carcontracthireonline.co.uk and find out some useful info on the pros and cons. Or give any good broker a call as I did, they tend to be very helpful about explaining the ins and outs of contract hire and vehicle leasing as it is very confusing when you haven't done it before!

Good luck

tightwadd

Try visiting http://www.leasingandcontracthire.com/car-leasing-and-contract-hire-funding/business-contract-hire.cfm for an explanation of company car leasing versus personal leasing.