contract hire question

[andyollie]

hi,

im thinking of contract hiring a new A4 tdi 2.0 s-line.

first question is, can i put my own wheels on the car when i get it, provided i take them off then i return the car after the 3 years.

second question is, im running a B5 Chassis A4 TDI which i love, is the TDI s-line a good buy?

p.s company owner is reason for hire purchase

 

[gizze]

Yeah, as long as you return it to stock and tell your insurance campany you are fine, and you will love the 2.0TDi S-Line coming from a B5.

But if you own the company you would be better to buy the car and charge 40p per mile.
I don't know anyone who owns the company and has a company car, far better to charge pence per mile and pay for it that way.

 

[andyollie]

contract hire has certain tax and balance sheet benefits /ubbthreads/images/graemlins/smile.gif
thanks for reply

 

[gizze]

Is it a limited company or are you a sole trader?

I presume the latter from your answer.

 

[Anito]

Bear in mind that if your company is ltd and the company buys you the car you will be liable for BIK. I'm in the same position of having jut ordered my new car on a lease but in my own name. This way no BIK and I get to charge the tax man for personal use.

With regards to the other stuff, do what you like as long as it gets returned with the correct spec.

 

[AndyMac]

as long as you don't change the size of the wheels

 

[gizze]

[ QUOTE ]
Bear in mind that if your company is ltd and the company buys you the car you will be liable for BIK. I'm in the same position of having jut ordered my new car on a lease but in my own name. This way no BIK and I get to charge the tax man for personal use.


[/ QUOTE ]

I got out of my company car last year when I got an ML, the monthly repayments were £469 and they wanted to charge me £512 a month in company car tax!!

I now do approx. 1250 business miles a month.

 

[gizze]

An A4 2.0tdi S-Line with £2000 worth of options means you get charged £144 a month in BIK.

To do a personal contract hire over 36 months and 10k miles p/a on that car would cost you £404.
Fuel would cost £851 for those 10k miles.

If you put a milage claim in for 10k miles at 40p per mile you would have £4000 come to you tax free, and you can put that against your books.

So the car, tyres insurance, tax and the fuel would cost around £520 a month.
You would get £333 back from milage allowance, and save £144 in BIK tax = £477.


So in the case of a small engine car like the 2.0tdi with low emissions you are probably better to have it as a company car.