Business Car leasing

Before you apply for business finance, we’d recommend that you speak to your accountant regarding your personal tax liability.  Depending on your personal circumstances will determine, the better option for yourself, which of course your accountant can advise on.  With many funders, the rentals are usually the same for personal and business consumers alike, although from time to time there can be differing rates depending on manufacturer and funder promotions.

The personal prices displayed on our site, include VAT at the current pre-vailing rate.  Should the chancellor increase the VAT levy during your contract, you would need to pay the increased levy amount each month.  The business prices exclude VAT.  We display these differently as many businesses can reclaim 50% of the VAT element on the hire of the vehicle and 100% of the VAT on the maintenance element, meaning that the effective rental is less than the price including VAT.   If a business is not VAT registered, then they’re unable to reclaim and VAT.  Any individual that drives a business vehicle will become liable personally for benefit in kind taxation.  The amount you pay varies as it’s based on the Co2 emissions of the vehicle, your level of taxation and the P11d value of the vehicle.  If you apply for a personal lease and use the vehicle for business purposes, you’ll be able to reclaim mileage costs through your business and won’t be liable for benefit in kind taxation for the vehicle.

If you receive a car allowance from work and it is paid directly to you via your wage packet, then this means that whilst the vehicle will be used for business purposes; it’s you as an individual that will be applying and committing to the vehicle. If this is the case you will need to look at Personal options Contract hire lease agreements are not flexible so before you commit its important to factor this in, to ensure that should you no longer work for that company and no longer receive the allowance, you’re able to meet the continuous repayments of the lease agreement.

We can provide customers with a business contract hire.  Whether or not you’re likely to be accepted for finance is dependant on how the business is currently trading.  We use a panel of lenders, and all have different criteria.  Some lenders will not consider a company until it’s been trading for at least 2 years.  Another will consider a company with a Directors Guarantee providing that the value of the vehicle doesn’t exceed a certain amount, whereas another will consider a new start with 3 months business bank statements on a terminal pause agreement.  The best thing to do is to speak to us, explain your current situation and we’ll advise the best way forward.