Depending on your circumstances, if you’re any of the following you may qualify for a business car or van lease:
- Sole trader
- Self-employed
- Limited company
- Partnership
- A VAT registered business
- An LLP (Limited Liability Partnership)
- A PLC (Public Limited Company)
Can I lease a car if I’m self-employed?
Yes, if you’re self-employed you do qualify for a business car lease as you’ll be considered a sole trader, however there might be times when a personal lease is a better option.
If you need help understanding whether a business car lease or a personal lease is best for you, we recommend calling us on 0800 311 8290 or emailing so one of our team of leasing experts can help and advise you on the best option to suit your needs.
To qualify for a business car lease as a self-employed person, you’ll have to go through a process similar to that which private individuals applying for vehicle leasing must go through, however the information and documentation required will be slightly different.
What do I need to provide when applying for a self-employed business car lease?
You can lease a new car from Flexed if you’re self-employed. To get your business lease car you’ll have to provide:
- Your latest set of accounts
- Your last 3 months bank statements
- Proof of address & ID
You’ll also have to undergo a credit check to make sure you’re eligible for vehicle finance.
We’re lucky enough to have our own in-house finance department who deals with every application, so each one is looked at individually and a decision is made based on all the information and documentation provided. We’ll consider every option to get you through the application.
There may be some instances where you fall into our ‘grey’ area and we may ask for a refundable deposit to support your application. This money will sit on your account and be refunded back to you in full at the end of the contract – providing no outstanding charges occur during the lease.
What is business contract hire?
For business contract hire you pay a fixed monthly amount for however long you lease the car for, which at Flexed can be anywhere from 28 days to 3 months, 6 months or even 12 months. You agree on a mileage allowance that must be adhered to in order to avoid end of contract charges and once your time is up, you simply hand the car or van back or arrange a new business car lease.
What are the benefits of a business car lease if you’re self-employed?
There are many benefits to business car leasing if you’re self-employed or otherwise, which is why it’s popular with both large and small businesses here in the UK.
- Fixed monthly payments
- No depreciation worries or having to sell the vehicle on when the time comes
- Lease for as long as you want
- Claim back 50% of the VAT if VAT registered, or 100% if the vehicle is used solely for business purposes
- UK road tax included in the price, along with breakdown cover and manufacturer warranty
- Choose from a superb range of quality cars including Audi, BMW, Mercedes-Benz, Skoda, Volvo and many more
- Quick turnaround with in-stock cars available the next day
- All cars replaced after six months
Do I have to pay company car tax if I’m self-employed?
As a self-employed worker, you don’t have to pay company car tax. You also don’t have to pay company car tax if you:
- Are a partner in a small partnership
- Are a member of a Limited Liability Partnership (LLP)
- Are the owner of your own business/sole trader
However, in many other cases, if you lease a car through a business, you’ll most likely have to pay company car tax. If you’re unsure whether you’ll need to pay company car tax for your business car lease, drop us an email today.
Is a business car lease right for me?
There may be times when personal leasing is the best option for a self-employed person, especially if your business has only been running for a short period of time.
If you lease privately, you’ll still undergo a credit check to ensure you qualify for vehicle finance and can afford to make the monthly payments. However, if you have a poor credit score, don’t be disheartened – as we mentioned earlier, we have other options available to you.
Need help getting a business car lease?
To conclude, it’s possible to lease a car if you’re self-employed but you must go through a similar process to what other businesses or private individuals have to go through.
There are plenty of advantages with business car leasing such as tax benefits and the fact that you more often than not end up with a better deal than going down the personal leasing route. However, it’s not for everyone and you may discover that leasing privately better suits your current situation.
For help with your business car lease or to find out more about our car leasing deals call 0800 311 8290 or email us today.
