Self emplyed----lease or buy?

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Thu 22 Mar 2007 16:40
Self emplyed----lease or buy? - barney100
I am self employed and am thinking of leasing a car instead of buying. I have always bought in the past but am curious about the leasing angle. Anybody really clued up on this?
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Thu 22 Mar 2007 16:48
Self emplyed----lease or buy? - boxsterboy
Surely leasing is only of any benefit over buying if you are VAT registered.
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Thu 22 Mar 2007 17:16
Self emplyed----lease or buy? - cheddar
Surely leasing is only of any benefit over buying if you
are VAT registered.


I am self employed and VAT registered though dont see that being so makes much difference for me, my simple calculations to date show that I can be better of with my own car, either bought or on PCP or PCH and personally charging my own company 40p/mile than running a car as an asset of the company.

If I do 500 miles a month at 40p/mile I recover, after fuel costs, £150 tax free, to acheive the same benefit in VAT terms I would have to be paying a lease of around £850/month.

This is a little simplistic and there are other factors to consider however it is a good starting point.
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Thu 22 Mar 2007 18:24
Self emplyed----lease or buy? - Robin Reliant
Your annual mileage will make a big diffence as to whether leasing is worthwhile or not. When I was instructing I looked into it a few times, but all the deals I saw had an upper mileage limit of 15000 tops, which was totally unrealistic as I was clocking 35-40 thou. The surcharge per thousand miles for exceeding that limit made leasing out of the question.
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Thu 22 Mar 2007 18:20
Self emplyed----lease or buy? - AlastairW
Try this link
www.accountingweb.co.uk/cgi-bin/item.cgi?id=166216...Y
Ms Bennyworth gives all the pros and cons with workings.
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