News1 min ago
Can someone explain benefits of company lease car versus personal lease car
5 Answers
Boss has just said that instead of replacing my current car (company leased for 36 months) when it expires - he would rather give me the money and I get my own car...
Now - as my current car is classed as a sports car - I do get taxed quite heavily on it...
What is my best option?
Boss gives me the equivalent of what he pays for the current car - and do I
a) get a loan and then buy a new car
or
b) lease a new car...
I would be looking to replace it with something similar. and if I get the money as opposed to the company leasing the car - then I obviously get taxed on the income too.
What would be the best option? Current car equates to £380 per month exc vat. Company pays for maintenance and services - so presumably I would then have this cost to bear.
Would I be better off buying a car on finance.. then if I want to trade it in in 3 years time for a new one ?
Now - as my current car is classed as a sports car - I do get taxed quite heavily on it...
What is my best option?
Boss gives me the equivalent of what he pays for the current car - and do I
a) get a loan and then buy a new car
or
b) lease a new car...
I would be looking to replace it with something similar. and if I get the money as opposed to the company leasing the car - then I obviously get taxed on the income too.
What would be the best option? Current car equates to £380 per month exc vat. Company pays for maintenance and services - so presumably I would then have this cost to bear.
Would I be better off buying a car on finance.. then if I want to trade it in in 3 years time for a new one ?
Answers
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Just a point -the tax you pay is based on the list price of the car so being a sports car doesn't 'per se' mean a heavier tax.
You will of course pay tax and NI on your extra pay although I'm sure this will be outweighed by the savings on the high tax charge for a company car.
Remeber you'll have to insure it too - maybe for business use too.
Will you use it for business? If so you need to ask what rate per mile your employer will pay
You will of course pay tax and NI on your extra pay although I'm sure this will be outweighed by the savings on the high tax charge for a company car.
Remeber you'll have to insure it too - maybe for business use too.
Will you use it for business? If so you need to ask what rate per mile your employer will pay
I have had 3 company cars here now... and was happy to continue in the same way - but I think my boss is worried about me leaving then dumping him with the contract - one girl left in jan with half the contract still to run - luckily the finance co managed to flog the car then!
Will I be worse off financially though? WHo should I speak to? An accountant??
Will I be worse off financially though? WHo should I speak to? An accountant??
If you like to have a brand new car every 3 years from brand new then a lease is a better deal but you could lease one yourself.
BUT if you just want a nice car and maybe save a bit into the deal then go for warrantied used.
The two laces you get caned are on list price and emissions. a sports car will put your insurance up but not necessarily your road fund.
BUT if you just want a nice car and maybe save a bit into the deal then go for warrantied used.
The two laces you get caned are on list price and emissions. a sports car will put your insurance up but not necessarily your road fund.
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