When you opt for business car leasing you get rid of the need to find initial capital to buy company cars, all you need to do is pay the agreed monthly figure – that means you can budget the cost into your business finances.
Lastly, when you reach the end of the contract period the car is returned and sold which means you don’t have to worry about depreciation or getting the vehicle sold.
Reclaim 50% Of VAT
Business car leasing is subject to VAT, however, if your business is VAT registered you will be able to reclaim 50% according to VAT Global. This means that on your monthly invoices you will be able to have a 50% VAT back claim.
It isn’t possible to claim 100% as in nearly all cases private use of the car is also included. If your lease car is a pool car with no private use you will be able to claim 100% of the VAT back.
100 THINGS TO KNOW ABOUT GPS AND FLEET MANAGEMENT
Hey! I'm George J. Magoci and I will send you a FREE eBook where you can learn 100 Things To Know About GPS and Fleet Management.
Whatever way, it makes VAT sense to fund your business cars.
Having a maintenance contract as well as the monthly business car rental means you can claim 100% of the VAT back on this. Restrictions do not apply.
Enjoy Improved Fuel Economy And Better Safety
The latest car models provide reliability, durability and great fuel economy, things that your staff, as well as your business, will greatly benefit from. This will help to lower your expenses, as well as your staff’s personal outgoings, as well as company car tax issues. In addition, in the event of a road traffic accident, they have the best protection since they are driving the safest cars.
