The customer pays a fixed monthly rental which is based on annual mileage. The car is simply handed back at the end of the agreement, subject to mileage and condition. Rentals are inclusive of VAT.
Ownership: Van/Vehicle Lease Purchase
A product for business users where a portion of the capital cost can be deferred until the end of the agreement, known as a balloon payment, or residual value. In effect this reduces the payments or shortens the agreement. The balloon payment remains the customers responsibility and must be paid in full when it is due. There is no guaranteed future value with this agreement.
At the end of the contract the customer has the following options:
Ownership: Personal Contract Purchase
A finance plan where the customer can defer a proportion of the purchase cost until the end of the agreement. This final payment is the guaranteed future value (GFV). This makes monthly payments affordable and allows a shorter repayment period. Mileage limit is set at the start of the agreement and the customer is responsible for all servicing and maintenance.
At the end of the agreement the customer has three choices:
Non-Ownership: Contract Hire in Dorset, Poole, Bournemouth and Wiltshire
The customer pays a fixed monthly rental which is based on annual mileage. The car is simply handed back at the end of the agreement, subject to mileage and condition. Rentals are subject to VAT.
What are the rules and what will be the cost to a company car driver?
New Generation Nissan Qashqai 1.5dCi; 110PS; Acenta Premium; 6 speed manual with metallic paint. 99g/km Basic price £22,635.00 + metallic paint at £525.00 total OTR £23,160.00; For 2014/15 99g/km = 13% BIK so for a 20% tax payer sum would be:
£23,160 x 13% x 20% = £602.16 per year or £50.18 per month
The company will also have to pay additional NIC for the employee again based on the vehicles emmissions.
For outright purchases the company gets a write down allowance (WDA) of the vehicles value in the first years, based on the vehicles emissions. These purchases must form part of the first 250,000 of capital expenditure in the company's current tax year.