Possible Company Car

[maxcars1]

Right guys i need some advice. Just setting myself up self employed so looking at Sole trader or Ltd Company. Was thinking of getting new car for visiting clients, but dont know if i should lease or buy outright and finance. Any advice would be welcomed:D

[robmawer]

Depends a lot on whether you do set up as a sole trader or a ltd company, how much you plan to be taking from the company, what sort of car you're thinking of getting, what sort of cashflow you're going to have, how credit-worthy you/your company will be, how long you're planning on keeping the car, etc.

My advice would be to discuss it with your accountant, they'll have a much better idea of what option will be best depending on your circumstance...

Rob.

[maxcars1]

Im earning 34k now in my full time job, but setting up as a Mortgage Broker part time and building business selling mortgages, with additional selling of protection and writing wills. Looking at keping car for minimum of 2 yrs. Suppose i really need to speak with and accountant at the pros and cons.

[texasjohn]

I'd take Rob's advice.

The only thing I'd also consider is how much you put a value on the peace of mind of not having to worry about your 'own' car, i.e. park a leased car or a car who is owned by someone else (hire car, company car) overnight and you never worry about it like you do when it's your name on the V5!

If you want something emissions heavy (say over 220g CO2 which is quite a way above a VRS TFSI octavia anyway) the high income tax hit each year can make it cheaper to run your car privately rather than have that same make and model as a company car. This is more the case if you get a good discount on the list price buying or leasing privately; with a company car you always get taxed on the list price of the car regardless of what price Lex or whichever leasing firm purchased it for.