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Business Leasing

Business leasing offers many benefits including tax advantages, the option to renew regularly and include maintenance costs.

Benefits of business leasing

Fixed costs
Better Cash Flow
VAT Benefits
Easy Maintenance

Got questions?

Frequently asked questions regarding our Business Leasing package.

What is the difference between business and personal leasing?

If you are applying for vehicle finance as a limited company, partnership, sole trader or LLP, you may be eligible for business leasing.

Occasionally, manufacturers offer special rates for business customers only. This can result in a difference in price between business and personal prices.

Business car leasing also offers positive tax implications. You can reclaim up to 50% of the rental (for cars) or up to 100% (on commercial vehicles) on a business contract hire agreement.

Business customers also get exclusive extras, such as outsourced fleet administration, that personal customers would not have use for.

In comparison, if you are applying for vehicle finance as a private individual, you may be eligible for personal leasing. Personal contract hire is similar to a business contract hire agreement with the exception of reclaiming the VAT. All personal contract hire prices include VAT.

In some cases, personal leasing may actually be the appropriate option for certain businesses. For example, if you are a self-employed person who has recently just started your own business, you may not have the three months’ business bank statements required by most funders for a business lease. In this case, personal leasing may be the better option. If you’re unsure, your sales consultant will be able to help.

Which option is best for self-employed customers?

Whether you are self-employed or not, the type of leasing contract that is most suitable for you will depend on your individual financial circumstances and what you are looking for from your new vehicle. If you’re unsure which option to go for, ask your sales advisor – they will be happy to help.

To be granted finance on a business lease basis, you will need to provide three months’ business bank statements.

If yours is a new business and you are unable to do this, you may be able to lease a vehicle on a personal basis instead.

To find out more about financial eligibility, take a look at our business finance eligibility or personal finance eligibility pages.

How much annual company vehicle tax will be due on my leased business car?

The annual car tax on your company car will depend on a number of factors:

  • The P11D value
  • Your income tax percentage rate
  • The benefit in kind (BIK) tax banding, which is determined by its CO2 emissions

To work out the annual car tax on your company vehicle, use our company car tax calculator.

Who is responsible for insuring the leased vehicle?

You are responsible for arranging your own insurance on the vehicle. This must be a fully comprehensive insurance policy.

For business lease agreements, the insurance certificate should be in the company name or a director's name. If an employee is required to drive the vehicle, a letter on company headed paper may be requested confirming that the employee is authorised to drive to vehicle and confirming his/her position in the company.

Please note that for business contract hire and personal contract hire agreements, the finance company is the registered owner and keeper of the vehicle.

For further details regarding insurance, please refer to your finance documentation.

Are there any restrictions to lease a vehicle?

As long as you have a full UK driving licence, are able to afford the monthly rentals and have a good to excellent credit score, you can apply to lease a vehicle from the age of 18. There is no upper age limit.

Please note, we are unable to assist businesses who wish to use the lease vehicle for "Hire & Reward" purposes. This includes Taxi, Chauffeur, Driving Schools and Rental companies. Some funders also have additional restrictions in place for customers who work in the Motor Trade. Please contact one of our Leasing Consultants for further information regarding this.

Still have questions?

Contact one of our friendly sales advisors to find out more and we’ll be in touch to help you.

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