INSIGHTS & GUIDES
Is business car leasing cheaper than personal?
Why is business car leasing cheaper than personal?
On our website a business lease is shown as plus vat and a personal lease is shown inclusive of VAT which is why a business lease looks cheaper than a personal lease. However, a business may be able to claim back some or all of their VAT making it a cheaper opiton to personal leasing.
What's cheaper, business or personal car leasing?
On the whole, the buisness and personal prices on our website are the same, with a business lease you may be able to claim some or all of the VAT so it may be beneficial for you to go on a company car lease vs a personal lease.
What's the difference between personal and business car leasing?
Looking through our website you may wonder why are business leases cheaper than personal? Essentially there is no difference, personal car lease deals include VAT whereas business car lease are plus VAT as some businesses can reclaim anything from 50% to 100% of their VAT & up to 100% of the maintenance agreement, hence making their lease deal cheaper. If you are looking for a self employed car lease it is worth considering both a business or personal lease, it just depends which will best suit you or your business.
Can anyone get a business car lease?
As an owner of a buiness you may have many questions and may want to know can I lease a car through my business? Any business regardless of their size are eligible for a business lease if they fit into one or more of the following catergories:
- Limited Liability Company (LTD)
- A Limited Liability Partnership (LLP)
- A Public Limited Company (PLC)
- A Sole Trader (Self-employed car lease or van lease)
- A Charity or Pulic Company
What do I need to get a car on business lease?
Leasing a car through my limited company, what do I need to know?
Eligibilty criteria:
- Must be trading for a minimum of 3 years (some finance companies do look at start up companies, please ask for further information).
- Show a suitable income and profit level
Documentation required:
- The details of your business e.g. business name, address, company registration number etc.
- Director or business owner detials e.g. name, date of birth, home address, etc
- Bank details e.g. account number and sort code
Additional credit check information may be required:
- 3 months business bank statements
- VAT return (if you are VAT registered)
- End of year accounts
- Last tax return
- A director's guarantee to support the business application may be requested
Can self employed people lease a business car?
In short yes, a self employed car lease can be done on a business lease. For a sole trader car lease the individual will need to provide the annual turnover and the date established, along with the company registraton number and VAT number if applicable.
The main tax benefits leasing car self employed is that you can claim it as a business expense. If you're not VAT-registered, this is the primary benefit for a sole trader over a personal lease.
You can write off the cost of your business lease as a business expense on your tax return.
Self employed car lease tax deduction
You are exempt from paying company car tax if you:
- Are the proprietor (owner) of your own business
- Are a partner or a small partnership
- A member of a Limited Liability Partnership (LLP)
