1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

contract hire question

andyollie Nov 7, 2005

  1. andyollie

    andyollie Member

    114
    11
    16
    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
     
  2. gizze

    gizze Member

    645
    1
    18
    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.
     
  3. andyollie

    andyollie Member

    114
    11
    16
    contract hire has certain tax and balance sheet benefits /ubbthreads/images/graemlins/smile.gif
    thanks for reply
     
  4. gizze

    gizze Member

    645
    1
    18
    Is it a limited company or are you a sole trader?

    I presume the latter from your answer.
     
  5. Anito

    Anito Member

    434
    7
    16
    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.
     
  6. AndyMac

    AndyMac Moderator Staff Member Moderator

    9,832
    45
    38
    as long as you don't change the size of the wheels
     
  7. gizze

    gizze Member

    645
    1
    18
    [ 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.
     
  8. gizze

    gizze Member

    645
    1
    18
    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.
     

Share This Page