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October 8th, 2021
Looking for car finance deals? What about commercial vehicle leasing deals? If you’re self-employed, deciding to take out a leasing deal on your new vehicle could benefit your business, and save you money.
If you’re self-employed, any car or van leasing company will view you as a sole trader, and therefore eligible for a business lease. Many individuals are now opting for leasing deals, as opposed to buying outright, due to the cost efficiency for their business.
No Company Car Tax – As a sole trader, there is no legal distinction between yourself and your business. Therefore, unlike an employee using a company car, you will not need to pay company car tax.
Commercial Vehicles – If you opt for a commercial vehicle rather than a car, you get the option of 100% tax relief applicable to monthly payments you make for the duration of your business lease. As a rental it is 100% tax deductible on your expenses.
Running Costs – If you opt for a business lease as a sole trader, you are able to claim expenses on your vehicle running costs. You can log this as ‘Actual Cost’ on your tax return and claim on running costs such as insurance, fuel, road tax, MOT, repairs & maintenance.
VAT – If your business is VAT registered, then you are able to claim back 100% of the VAT you pay on your monthly payments on all commercial vehicle leasing deals. If you opt for a car then only 50% of the VAT cost is reclaimable.
Road Tax – Often, leasing deals include your first year’s road tax in your payments. This is another great way you can save your sole trader business money.
There are many benefits you can take advantage of when you opt for a leasing deal. One excellent benefit of van or car finance, is that you are more likely to be able to afford a new vehicle than if you had bought outright.
If you’re using an established van leasing company, for example, they will be able to provide great prices for you due to their buying power and relationships with manufacturers.
First impressions are important, especially in business. As a sole trader, turning up to a job or meeting in a new vehicle will give your business an air of professionalism. As well as making it clear the business is doing well.
New cars and vans are also more fuel efficient than older models. Opting to lease a new vehicle can mean you are able to choose a model that is particularly fuel efficient, and in turn save you money on fuel expenses.
Contact Us or call 01179625314 and chat to one of our vehicle experts today to learn more about how a car finance deal could benefit your business.
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