Here at Vehicle Savers we speak to a lot of people about business car leasing for self employed people. If you are self employed and looking to lease a business vehicle, but want to know more, then you have come to the right place.
In this blog post we look at business car leasing for self employed and how it works. We look at the benefits and if business car leasing could be right for you.
The number of self employed workers grew from 3.3million in 2001 up to 4.8 million in 2017, according to the Office for National Statistics. This is a huge rise, and one that doesn’t look to stop anytime soon. More and more people are struggling to get a work-life balance through their jobs, so they are creating their own jobs.
You can be deemed as self-employed if you own a business, instead of working for an employer. If you agree a fixed price for your work with an employer or client you can also be self employed. You can be self employed if you are your own boss, setting your own work schedule and prices. You can be classed as self employed if you work for more than one client at the same time. If you provide the tools, equipment and materials you need to complete a job this may also mean you are self employed.
Is Business Car Leasing Possible for Self Employed?
Yes! You can lease a business car if you are self employed. You can also consider business car leasing, if your business is a limited company, a partnership, a VAT registered business or a Limited Liability Partnership (also known as an LLP).
Business car leasing is also available to an organisation that is a PLC, a charity, a Local Authority, a Central Government or an Embassy. Business car leasing for self employed is possible because you are essentially operating as a sole trader.
What Do I Need for Business Car Leasing for Self Employed?
Just as you would with personal car leasing, there is documentation that needs to be provided. You may need to provide your latest set of trading accounts and your last 3 months bank statements. You will also need to provide proof of address and proof of ID, either a driving licence or a passport for example.
Car Tax for Self Employed
If you lease your car through the business you will have to pay company car tax. However, if you are a partner or small partnership you will not need to pay company car tax. If you are a member of a Limited Liability Partnership you will not have to pay company car tax. As the owner of your business or as a sole trader you will not have to pay company car tax.
As a self-employed worker you do not have to pay company car tax. This is because there is no legal difference between you and your business. You will always own your vehicle.
If you’d like to know more about the business car leasing options for self employed then please contact us now. Alternatively you can come to our showroom and see the cars we have available.