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Why Choose Pink
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The common denominator for most businesses, regardless of industry sector, is to control the bottom line. In the current economic climate that means managing costs very closely, finding new ways to operate efficiently and ensuring compliance to avoid incurring unnecessary costs. In a fast-moving business with a thriving fleet management department this means business car leasing is essential, because it is the best way to control fleet management costs.
Business car leasing is sometimes known as business contract hire or BCH. It is similar to personal car leasing in that a motorist receives exclusive use of a new motor vehicle for an agreed lease period in return for a fixed monthly payment. This payment is paid and managed by the business rather than the individual and the same annual mileage restrictions and service & maintenance options also apply.
The main difference between business car leasing and personal car leasing is that a business lease is more tax efficient and is therefore much cheaper than personal leasing. A company car is classed as an asset to the employee and it is therefore taxed along with their normal income, as a Benefit-In-Kind. The amount an employee is taxed depends on the list price of the vehicle, the CO2 emissions and the type of fuel used. For 2022/23, electric vehicles (EVs) pay only 2% BIK tax, and hence they are becoming increasingly popular as fleet vehicles run by a business.
Also, a business can claim 50% of its VAT payment back on a business lease vehicle, and 100% of its VAT payment back if the vehicle is exclusively used for business purposes only. The business can also claim all of its VAT payments back on service and maintenance packages.
A business can expect to find several benefits in business car leasing:
You can find expert advice on business car leasing and other benefits relating to it, such as salary sacrifice car schemes, by speaking to Pink Car Leasing today.
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