Personal lease of ‘company car’

sargan

I am provided with cash per month for ‘company car cash option’
I am an employee not self employed.

Until now I have purchased my cars using a PCP plan
Been suggested I take out a ‘personal lease plan’, and declare this as ‘business use only’, then deducting Lease Payments off Annual tax the Lease cost via tax relief.

Can someone explain if this is valid and any implications.

BoGoF

Might be me but I have no idea what your proposal actually is?

Wayne_O_Mac

sargan wrote: »

Been suggested I take out a ‘personal lease plan’, and declare this as ‘business use only’

Will it actually be for business use only?

sargan

Could use it that way ... have a personal car for other use.

BoGoF

You still haven't explained what it is you want to claim tax relief on?

Only way an employee can claim tax relief on a car they own is through business mileage using the AMAP rates.

laticsforlife

There are 2 lease type, personal and business.

The former includes VAT in it's pricing, the latter shows it without and adds it on, the idea being a business can claim the input tax (VAT) back.

For the OP this won't be happening, but there are usually many more much better (and cheaper) deals for business leases, although I doubt the OP can get one, as he's not a business.

Not sure what criteria they use, but submitting accounts and tax returns is probably one.

In terms of relief, if you sign up to a personal lease it's not business is it! Whatever proportion of commuting you do is private, as is any other weekend journeys for example.

BoGoF has explained what you can claim in tax reliefs.