Business leasing vehicle - what about insurance?

[Freelancer87]

Hello,

Myself and a partner own a limited company. We are going to lease a vehicle for her through the business. The vehicle will be mostly for private use and very minimal business use.

We want the business to pay for the vehicle insurance as well. How do we set that up and are there any recommendations of where to go or do we just call? Can we take out a normal vehicle policy but have the business pay for it? How does that work for our accounts and all of that?

Thanks for the help and direction!

 

[Lease4Less]

Be aware that you will be liable for BIK (company car tax) if you fund the vehicle this way.

It may work out better for you to fund the vehicle on a Personal Contract Hire agreement and pay yourself the addtional money via a dividend or PAYE.

Your insurance policy will also need to have business use on it, even if you are only using it occasionlly for work.

You can approach any number of insurance companies who will be able top offer what you want - Aviva, Direct Line, Endslieigh for example will all insure it for you.

You need to speak to your accountant on how best to account for the charges.

 

[Freelancer87]

Thanks....I have a call scheduled with the accountant for today to review BIK.

Even though the vehicle is leased through the company, it will be for personal use. Do I still have to do business vehicle insurance?

 

[weblisterltd.com]

Hi, i have dealt with company cars and insurance before, you can look online, we had pinheys, but as lease for less said you will need to get a business insurance policy. That way you can put drivers 25+ on the plan and anyone in the business can have access if you employ further people. You will just put it through the accounts as a business overhead with other vehicle expenses, will hit p+l direct.

 

[MyAccountantOnline]

Ignoring the tax issues and speaking from experience be careful when insuring a leased car. I found it quite difficult finding somewhere who will insure a leased car.

 

[Freelancer87]

Thanks for all of the advice

 

[businessfunding]

Ignoring the tax issues and speaking from experience be careful when insuring a leased car. I found it quite difficult finding somewhere who will insure a leased car.

Not a problem I've ever encountered!

 

[Lease4Less]

Not a problem I've ever encountered!

Nor me! Whilst I appreciated there are several insurance companies that will not insure a leased vehicle and insist that the V5 is in your name, the vast majority will insure the vehicle.

You may however need to contact them by phone to fully explain the situation rather than doing it online.

 

[MyAccountantOnline]

Not a problem I've ever encountered!

It's maybe where I used the Compare sites when I called each one they just wouldn't insure a leased car.

I spoke to the company that I leased my car with and they gave me a details of a company called A-Plan who specialise and were able to help.

I certainly paid more to insure my leased car than I could have if I owned it.