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Business & Self-Employed

Leasing through a business, and whether that is the right way round for you. Business contract hire, reclaiming VAT, Benefit-in-Kind, salary sacrifice, and the company car versus cash allowance question - including what applies if you are a sole trader or newly self-employed.

How Business Leasing Affects Your Tax & Accounts

A business lease is a rental, not an asset purchase: the rentals go through your profit and loss account as a deductible operating cost, with a 15% di...

Company Car vs Car Allowance: Which Is Better?

Take the company car if it's fully electric - at a 4% Benefit in Kind rate for the 2026/27 tax year, the tax cost is small enough that almost nothing...

Business Van Leasing Explained: Tax, VAT and Costs

Leasing a van for work is treated very differently from leasing a car. A VAT-registered business can normally recover all the VAT on van rentals rathe...

What Is Salary Sacrifice Car Leasing? UK Guide

Salary sacrifice car leasing is an arrangement where your employer leases a car and you give up an agreed slice of your gross (pre-tax) salary to have...

Reclaiming VAT on a Business Lease: How Much Can You Claim?

If your business is VAT registered, you can normally reclaim 50% of the VAT on the finance element of a car lease and 100% of the VAT on any separatel...

Business Car Leasing (BCH) Explained | FVL Guide

Business car leasing (business contract hire, or BCH) lets a VAT-registered company, partnership or sole trader rent a vehicle from a funder for a fix...

Personal vs Business Lease: Which Is Right for You?

For most VAT-registered businesses, a business lease wins on a van or an electric car, because of VAT recovery, Corporation Tax relief and a 4% Benefi...

Can I Lease a Car as a Sole Trader? UK Guide

Yes, sole traders can take out a business car lease. Business Contract Hire is open to anyone trading as a sole trader, and funders assess the applica...

Benefit-in-Kind (BiK) Tax Explained: What a Company Car Costs

Company car tax is worked out as P11D value × BiK percentage × your income tax rate. For the 2026/27 tax year a £40,000 electric car at 4% costs a hig...

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