Self employed car leasing

Self employed car leasing Many people who are self employed use a car for business purposes and because of this there are numerous options which an individual can use in order to buy a new car. Self employed people who wish to make tax efficiencies through buying a new car must ensure that they use the car for business use and not just for personal use. People who wish to use car leasing in order to get a new car can do so through their business if they are self employed and if they use the car for business purposes. Although in order to get the car through self employment it is important to remember that the business must be registered for VAT.Car leasing is an option where monthly payments are made for a fixed period of time; this will usually be between twelve and thirty six months. After the fixed period of time the car will usually be handed back and then another lease is often taken out. The advantage of a car leasing programme is that it is usually brand new cars that are offered to individuals. Many self employed people choose to take a car through car leasing as quite often tax can be reclaimed on the monthly payments that are made.Whilst the option of car leasing may work for some self employed people, it is worth remembering that it will not work for everybody. In some cases the tax implications may have an adverse effect and they may end up paying more than previously. Some self employed people may find it more cost effective to buy the car with cash rather than funding it through a business. There are numerous car leasing organisations that offer specialist car leasing arrangements for self employed people and also people who work within businesses.Before taking out a car leasing arrangement as a self employed person, it is advisable to contact an accountant. It is important to establish whether the associated tax benefits from taking a car leasing arrangement out will benefit each business owner. Some accountants may recommend that the car is purchased outright through a cash payment.