Company car leasing

jojogirly

We currently run a small Ltd company, we turnover 50-60k.

At the moment we use our personal car which is on finance and claim back the 45p per mile, we pay for fuel on the business card and claim the difference between the two figures.

We do 10-12000 business miles.

Is leasing a car worth it? We are thinking longer term and getting a mortgage and not having the personal finance would make a difference to that.

Would it be worth getting an electric car through the business? Only just started looking at and not really sure how it all works. Thanks

Pennywise

No easy answer, you have to do the sums. Are you VAT registered? What is the CO2 emission of the proposed car? How many business miles/how many private miles per year? New or used car? There are plenty of online benefit in kind calculators, so plug the details into one of those to see what taxable BIK you'd suffer which has to be the starting point.

jojogirly

Fantastic, I will have a look at one of the calculators.

Savvy_Sue

And I'd also talk to your accountant, who will have a better handle on your business than any of us can possibly have. Although well worth reading up on it beforehand.