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Wed 27 Sep 2017 08:59

Any - Lease car - company car tax questions - csgmart

I currently run a car under a PCP scheme. In a few months I will be handing the car back and have decided not to take out another PCP.

I run my own business and have the option of the company leasing a car which I would use for business and personal use.

I would intend on buying the fuel myself and then claiming back for business mileage.

I have used one of the many company car tax calculators on the internet to work out my P11D tax - the calculator also shows a figure for fuel benefit tax. Question - if I pay for my own fuel do I have to pay this tax or can it be avoided?

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Wed 27 Sep 2017 09:19

Any - Lease car - company car tax questions - leaseman

The method which you described would not leave you any liability to pay fuel benefit tax.

HMRC issues Advisory Fuel rates for reimbursement of fuel for business mileage, and my statement above assumes that you will adhere to these rates. Follow this link for current rates, which are reviewed from time to time as the cost of fuel changes (up or down).

www.gov.uk/government/publications/advisory-fuel-r...6

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Wed 27 Sep 2017 09:28

Any - Lease car - company car tax questions - csgmart

Thank you.

Having looked at the costs involved this route seems to make a lot of sense financially.

The company can claim back 50% of the VAT on the monthly payments and as this is an overhead for the business it reduces the profits which mean our Corporation Tax bill is lowered.

Can you recommend any good sites for leasing cars? Your user name suggests this is your line of business - are you able to help me?

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Wed 27 Sep 2017 10:25

Any - Lease car - company car tax questions - leaseman

You're welcome csgmart.

Quite rightly, this site does not condone advertising by those who choose to provide help and advice to subscribers. We do not, perhaps strangely, promote or advertise our services but have a long-standing client base who regularly recommend us to their colleagues and contacts for the tailored advice we offer. We do not charge any fees whatsoever to clients, but derive our income from the commissions we earn from our dealership and lessor partners.

I'm sure that if you contact Avant, the moderator of the site, he will provide you with my email address, when I will be more than happy to guide you to the most appropriate solution for your requirements.

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Wed 27 Sep 2017 10:48

Any - Lease car - company car tax questions - Avant

Many thanks for that Leaseman, and for you professionalism.

Csgmart, if you would like to take this up, just Email moderators@honestjohn.co.uk and I'll supply Leaseman's address.

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Wed 27 Sep 2017 11:24

Any - Lease car - company car tax questions - csgmart

Thank you Avant - I will send an email shortly.

Thank you also Leaseman - hope to talk to you shortly.

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Wed 27 Sep 2017 17:17

Any - Lease car - company car tax questions - Falkirk Bairn

A son bought cars personally & then charged his own company 45p per business mile.

If he had bought/leased through his company & then he would have been liable for BIK on the car or car + fuel.

For him buying & running his own car was the best choice. A lot depends on what car, BIK rate & cost of car, tax rates paid, milegae covered privately & business SO there are no easy ansers to what is / is not the better route.

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Wed 27 Sep 2017 18:20

Any - Lease car - company car tax questions - csgmart

A son bought cars personally & then charged his own company 45p per business mile.

If he had bought/leased through his company & then he would have been liable for BIK on the car or car + fuel.

For him buying & running his own car was the best choice. A lot depends on what car, BIK rate & cost of car, tax rates paid, milegae covered privately & business SO there are no easy ansers to what is / is not the better route.

Understood - I'm in the same boat. The current thinking is we let the company bear the costs of the lease / servicing and insurance and we pay the BIK. The BIK is cheaper than the monthly cost of a loan / PCP and the overhead for the company reduces our Corporation Tax bill and we can also save half the VAT on the monthly payments.

Bottom line is there is no cheap way to running new cars.

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Thu 28 Sep 2017 21:32

Any - Lease car - company car tax questions - Smileyman

A son bought cars personally & then charged his own company 45p per business mile.

If he had bought/leased through his company & then he would have been liable for BIK on the car or car + fuel.

For him buying & running his own car was the best choice. A lot depends on what car, BIK rate & cost of car, tax rates paid, milegae covered privately & business SO there are no easy ansers to what is / is not the better route.

Just remember the change of mileage allowed once 10,000 business miles have been driven in any financial year

see "Employee vehicles: Mileage Allowance Payments (MAPs)" on attached link

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2017-to-2018

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Wed 27 Sep 2017 18:20

Any - Lease car - company car tax questions - csgmart

Many thanks for that Leaseman, and for you professionalism.

Csgmart, if you would like to take this up, just Email moderators@honestjohn.co.uk and I'll supply Leaseman's address.

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