Financial advice for self employed - Ready to buy a Cupra

[SEATFRCUPRAMN]

As some of you have read from my previous posts i am going to a cupra this week and i am going to pay around £13.5k.

I am self employed and thus able to claim back part of the car, running costs etc. However i am not sure what would be the best option for some in my position i.e. Lease or Hire Purchase. If there is anyone there that can offer me advice i would be very grateful.

Thank you

 

[Deleted member 35811]

You need to see your acountant - they are the best answer for your question

 

[phil3012]

You need to see your acountant - they are the best answer for your question

I agree with that as well, there are probably a number of ways of doing it and possibly not pay VAT on the monthly repayments if it was a lease.

Also you might be able to buy it privately and then claim the mileage back.

I'm sure it's different for everyone.

Sorry can't be much more help.

 

[robdf2]

also you need to take into account if you want to modify it or not.

 

[ChrisMansell]

I agree with that as well, there are probably a number of ways of doing it and possibly not pay VAT on the monthly repayments if it was a lease.

Also you might be able to buy it privately and then claim the mileage back.

I'm sure it's different for everyone.

Sorry can't be much more help.

pretty sure you can't reclaim VAT on a car unless it's strictly for business use only and doesn't come with a stereo!! stupid I know . . .

although you can reclaim half the VAT back on leases, that is, if you are VAT registered. . .

 

[Gary@Cookies]

You can only claim back VAT on contract hire rentals if the the car is VAT qualifying which is usually if its either been on contract hire previously, is an ex-demo or an ex-rental, if it is VAT qualifying and you are VAT registered then you can claim 50% of the VAT back and claim the rest of the rental including the other 50% of VAT against your tax. However, contract hire agreements can be quite costly to terminate early and although its a regulated agreement your early termination options are very limited.

As before I would advise taking the car on a hire purchase agreement on as low a rate as possible with as low as possible admin and right to purchase (you don't pay that one if you terminate the agreement) fees.

This way the interest payments can be set claimed against tax, the annual write down can be set against tax and if things go bad work wise or if the car suddenly goes into negative equity you can use the halves and thirds rule and give it back once you've reached the halfway point.