buy or lease vans

[channelfs]

Hi,

I have just started a limited company and was looking into getting a double cab pick up (for company car tax reasons), but I am not sure if it is more tax efficient to buy a second hand one for £8K of to lease a new one over 3 years?

could some please advise

thanks

 

[David Griffiths]

They are equally "tax efficient" in the sense that you get tax relief on what you spend.

But the tax relief is only 20% of what you shell out, so should be a minor consideration.

 

[bigsie]

It really depends on how your cash flow is, if you lease you will have money to spare and put into the business.

 

[Deleted member 59730]

Lease until you can afford to buy. Its the VAT timing that makes the difference.

 

[channelfs]

Lease until you can afford to buy. Its the VAT timing that makes the difference.

Could you explain what you mean by VAT timing?

Thanks

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[MyAccountantOnline]

Hi,

I have just started a limited company and was looking into getting a double cab pick up (for company car tax reasons), but I am not sure if it is more tax efficient to buy a second hand one for £8K of to lease a new one over 3 years?

could some please advise

thanks

What you (or your accountant) needs to do is sit down with all the relevant figures and do some number crunching. It depends on so many figures.

 

[Bob]

You should never buy any sort of vehicle "for tax reasons". As David says they are really just an expense and you only get tax relief on what you lose