Regardless of the shape or size of your business, Business Van Leasing offers many benefits which makes it a really smart and flexible choice. To find out more about the tax and accounting benefits of business van leasing, along with the staff-related benefits and broader business-related benefits, read on.
As well as all of the tax and accounting benefits, Business Van Leasing offers many employee benefits, plus many wider business-related ones too, such as employee incentivisation, increased staff reliability, peace of mind around corporate responsibilities, plus the opportunity to present a much more professional business image!
The sheer affordability of van leasing means your business can probably drive a much more premium vehicle than it would otherwise be able to, helping you to present an impressive, credible image to clients and customers
Van Leasing enables you to offer employees and potential employees the attractive proposition of a brand-new vehicle every 2 to 3 years.
Leasing a brand-new vehicle reduces the chance of vehicle breakdowns and therefore the chance of missed appointments and meetings
Leasing provides an easy way for businesses to always drive new vehicles, to be able to up-date vehicles more frequently (every 2 – 3 years) and take advantage of all the latest developments in technology and fuel efficiency
Your business won’t have the often-difficult task of selling the vehicle, it simply hands back the van to the finance company
There are considerable accounting benefits to leasing a van through your business. With low initial outlay and low monthly payments, fixed cost motoring and no vehicle deprecation - van leasing frees up business capital for other projects.
For all but a select few large businesses, lease vehicles do not need to appear on balance sheets, which can increase your ability to borrow capital
Set monthly instalments, all-inclusive manufacturer warranty and road tax means your business will know in exactly what it’ll be paying out every month. If you include a service and maintenance option, your business can also avoid large unexpected service and maintenance bills
Vans lose approx. 60-70%% of their value in the first 3 years and the potential resale value is an unknown. With leasing, however, you avoid the threat of these potential financial losses, as your business doesn’t own the vehicle
If VAT registered, for vans, the vehicles’ business usage directly translates to the VAT percentage reclaimable (e.g. 90% business use = 90% VAT reclaimable)
Your business can reclaim 100% of VAT on maintenance packages for a van (if the business is VAT registered)
Your business can reclaim VAT on fuel used for business journeys (if the business is VAT registered)
There is no Company Van Tax payable for those who are self-employed, sole traders or in a partnership