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Lease OR Contract hire???

CJ A4 Nov 7, 2005

  1. CJ A4

    CJ A4 Active Member

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    Hi guys can any of you shed some light on the matter. My brother inlaw is thinking about getting an A6 but doesn't know whether to go for lease hire or contract hire through his business!!! Which is best and what are the differences for and against each one? Thanks guys /ubbthreads/images/graemlins/beerchug.gif
     
  2. AndyMac

    AndyMac Moderator Staff Member Moderator

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    Lease is just straight forward finance on the car, contract covers servicing/maintenance & tyres etc. all you pay for is the fuel/insurance & tax.
     
  3. CJ A4

    CJ A4 Active Member

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    Cool so would contract be better from a tax point of few if he put it down as like a company car?
     
  4. AndyMac

    AndyMac Moderator Staff Member Moderator

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    No idea everyone I know has opted out. There's his own tax code to worry about but I imagine there are company tax benefits that would offset it if it's his business.
     
  5. CJ A4

    CJ A4 Active Member

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    Ok thanks for the info anyway Andy /ubbthreads/images/graemlins/beerchug.gif
     
  6. Anito

    Anito Member

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    He's better of taking either option personally. If his company buys the car it becomes a company car and is therefore subject to BIK.

    Get him to finance it personally that was he can charge the tax man for business mileage.
     
  7. gizze

    gizze Member

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  8. CJ A4

    CJ A4 Active Member

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    Thanks Gizze /ubbthreads/images/graemlins/beerchug.gif
     

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