I am employed but also have a side business of renovating properties. Which is the best option for me which will allow me to offset the cost of the van against tax? I do not earn enough to claim VAT back.
Our expert Rob answered...
Hi, thanks for your question. To find the best arrangement for you and your business, we need to speak with you, to ensure we tailor the right package. The best finance option for you will depend on a number of things, such as what kind of condition the vehicle will be in at the end of the contract, what kind of mileage you will be covering, and what options you’d like at the end of the contract. Here are a few key points, which you may find helpful.
Finance Lease gives you the benefits of taking advantage of equity built up in the vehicle. You also benefit from a low deposit, which can be as little as just one payment upfront. Monthly rentals are up to 100% tax deductible if you are VAT registered.
Contract Hire is the perfect product for you if you want fixed cost motoring and are confident about the mileage and condition of your vehicle over a set period of time. It is an easy and cost effective way to fund vehicles, which would enable you to control one of your biggest business expenses. You get a new vehicle without the up-front costs, freeing up money for you to invest elsewhere in your business. Tax benefits include reclaiming 100% of the VAT on all your payments and maintenance charges (if you have that included). Rentals are also 100% allowable against corporation tax.
One of our experts can go over all the options available and work out the best package to suit you, the business and ultimately your budget. Please call us up direct on 01442 838193 and we will be more than happy to help you. Kind Regards, Rob Cox.