Putting a vechile through your business?

[stoney]

We are about to get a new car and several people have suggested to me that I lease one through my business.

I would use it everyday to travel to work etc and use it for picking up stock, and for regularly attending courses. I also thought if I had a company vechile, I could employ someone to do a mobile service.

Does anyone else do this, if so, what are the advantages/disadvantages please?

 

[jes]

Hi Lisa,

I've never looked into it, but would leasing a car through your business be the most economical way of getting a new car?

You also need to find out how much of the cars rental and running costs you can offset against your tax bill. Again, I'm no expert but I'm pretty sure you won't be able to deduct anything for travelling to and from work and, obviously, any private use.

HTH
Jes

 

[nikkiseed]

hi i have my business paying for my car. i pay £175 a month for a ford fiesta. i have it sign written with logo, phone number and website. my business pays for petrol usage my accountant sorts it all for me. i just submit my receipts. i just need to log milage for my trips. so annually i have driving to and from work, wholesale trips, weddings etc just mark it all down. works really well for me as otherwise would be driving an old banger. like the fact im getting my name around, looks good when turning up for home visits, weddings and wedding fair. its not quite free advertising but it all helps.
:green:

 

[Exquisite Touch]

A friend of mine leased a car through his business, he understood that he could give it back after 12 months when he went to take it back as it was no longer finanically viable for him they told him tough he had to have it for 3 years and if if wanted to give it back they wanted the full 3 years payment in full settlement.

Read the small print was what he was told with a grin on the sales mans face, not a good thing to do as he went ballistic and very nearly got arrested.
Get a small run around and get it sign written for a couple of hundred quid you can get some good deals.

 

[stoney]

Thanks for all your advice, have looked into it and looks like it will work really well for me. My hubby already does it, so know the ins & outs, just wasn't sure how it would work for my kind of business.

All sorted now:hug: