Personal car lease as company car.

Mark9900

I have a limited company and want to lease a company car. It was refused by the lease company as my company has a poor credit score due to covid lockdown and the tv industry being hit particularly hard. However last year was brilliant with plenty of contracts and work coming in. The lease company will lease a car to me personally but I obviously want to reclaim the 50%Vat and put the rest through my business. Does anyone know if the lease has to be to the company with the company name on the monthly invoice or can I put it through as it is my company with only me as an employee? Any advice appreciated. 

Grumpy_chap

Mark9900 said:

I have a limited company and want to lease a company car. It was refused by the lease company as my company has a poor credit score due to covid lockdown and the tv industry being hit particularly hard. However last year was brilliant with plenty of contracts and work coming in. The lease company will lease a car to me personally but I obviously want to reclaim the 50%Vat and put the rest through my business. Does anyone know if the lease has to be to the company with the company name on the monthly invoice or can I put it through as it is my company with only me as an employee? Any advice appreciated. 

Will the lease company accept a company lease with personal guarantee?

Mark9900

I have said that I can personally guarantee it but the dealer told me that their lease underwriters have refused my company and will not look at it again. 

I don’t know why as I have a great credit rating. 

This is why I’m asking if the monthly invoice made out to me would be acceptable to be treated as a company car. 

Grumpy_chap

If you can do this, then it will need to be done correctly procedure-wise and worth checking with your Accountant.

Unless it is an EV, company car will incur high BIK.  Other finance approaches may be just as economical.

Mark9900

Yes it’s an EV because of the BIK at the moment. Thanks again. 

Car_54

You really need to ask an accountant rather than some anonymous posters!

Mark9900

Agree, but thought I’d see if anyone out there had been in the same situation. 

Sandtree

Speak to your accountant as they will be the ones that defend you if HMRC say you've done wrong. 

There are various challenges on reclaiming VAT from personal expenses plus obviously depends on if you are on any VAT scheme