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Consider leasing your next vehicle,
if you have a business. Leasing has a number of advantages over traditional credit, especially if you are a business owner.
The main reason to lease a van or car, is avoid paying tax. the UK is especially highly taxed thus it is important to utilze
as many ways to miniumise this expose as possible in order to run a successful business.
It is also best to shop around
for the cheapest prices. Van leasing benefits from 100 % against tax and VAT reclaimation where applicable in most
cases.
Vans How to get your money back on VAT and Tax
- In the UK, the vehicle must be for company use, since the tax advantage is taken from the end
of year profits. It is fine to use it for personal use, and generally it is just a flat £500 chrage by the revenue for using
the van.
- Vans that seat more than 3 people are a little more complicated. Technically the payload should
be at least 1000 KG, or else you cannot reclaim the VAT. Thus vehicle like the Volkswagen Kombi are ideal.
- Number of glass panels.
Technically the van should not have glass in the rear portion of
the vehicle. This is relaxing depending on where in the UK you live.
Thus a Plumber cannot get away with reclaiming the
Tax on a 9 seater Caravelle minibus. If you were a taxi driver, this would be no problem.
- In some circumstances we suggest that you go for an operational lease,
which guarantees
the future value of the vehicle. Tou could try van sales website if needbe.
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Cars and How to get your Vat and Tax Back.
There is no easy answer to this.
Really speaking think carefully before actually getting a company car, since in the
UK we are taxed so heavily for these perks.
- Half the VAT is reclaimable on a lease or contract hire
- Contract hire is generally better for most companies and individuals
- The individual whom drives the vehicle WILL GET TAXED PERSONALLY
Another strategy is to
- Give the individual a payrise
- Pay them a decent amount per mile of £0.40 per mile
- Pay for sundry expenses like cleaning etc.
This way the individual does not get taxed and if they can do self assessment
and need the vehicle as part of their job, they get 100 % tax relief on the yearly payments, fuel the lot
Overall quite
a saving.
The disadvantage is that if the employee leaves their job they still have to pay for the vehicle, hence we suggest
2 year contract hire as the best solution.
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