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