Car Leasing For The Self-Employed: All You Need To Know

Can I Get A Business Car Lease If I’m Self-Employed?

Depending on your circumstances, if you are 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)

Basically, if you’re self-employed, you can get a Business Car Lease as you’ll be considered a sole trader, however, there might be times when a Personal Lease is the best option. Our team of leasing experts here at Flexed will help and advise you on the best option to suit your needs.

To qualify for Business Leasing as a self-employed person, you’ll have to go through a process similar to what 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 lease?

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You’ll have to provide:

  • Your latest set of accounts,
  • Your last 3 months bank statements
  • Proof of address & ID

You will also have to be credit checked to ensure your eligibility for vehicle finance.

We are 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/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.

Business Contract Hire Explained

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 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.

The Benefits Of Business Leasing

There are many benefits to Business Leasing if you’re self-employed or other, that’s why it’s popular with businesses large or small 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
  • You can claim back 50% of the VAT if VAT registered or 100% if the vehicle is used solely for business purposes only
  • UK Road Tax included in the price, along with breakdown cover and manufacturer warranty
  • A superb range of quality cars to choose from including Audi, BMW, Mercedes-Benz, Skoda and Volvo
  • In stock cars available the next day
  • All cars replaced after 6 months

Do I Have To Pay Company Car Tax If I’m Self-Employed?

If you lease a car through a business, more often than not you’ll likely have to pay Company Car Tax.

However, you don’t have to pay company car tax if you:

  • Are a Partner or a small Partnership
  • A member of a Limited Liability Partnership (LLP)
  • You are the owner of your own business/sole trader

What this means, is that as a self-employed worker, you don’t have to pay company car tax.

Is Business Leasing 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 do lease privately, you’ll still be credit checked to ensure you qualify for vehicle finance and can afford to make the monthly payments. However, if you do have a bad credit score don’t be disheartened, as we have other options available to you as we mentioned earlier.

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’s plenty of advantages with Business 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.

To find out more about our car leasing services and fantastic offers, please click here or give us a call TODAY on 0800 311 8290.

Drop us a quick email to talk@flexed.co.uk or chat with a member of our team NOW using our online ‘We Are Here!’ service – we’ll gladly answer any leasing questions you may have.

Need some advice on your leasing options?

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