Lease Car Through Your Business Tax Calculator

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December 8th 2019
Tax Week 36
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Lease Car Through Your Business Tax Calculator

How much can you save by leasing your car through your business? Use this calculator to find out.

If you are currently leasing your car, or thinking of leasing a car, and you have a business, then you might be wondering - 'could I lease this car through the business?' - well, it is a complex decision due to the sheer number of different taxes that need to be taken into account. This calculator has been created to help come to a quick decision.

When leasing a car privately, you do not have any 'company car' related taxes to consider. You take the profit out of your company as usual and then pay for the vehicle out of your take home pay. You can bill the business for business mileage.

When a company leases a car for an employee the cost of the vehicle (and associated costs) come off the profit. However, the employee has to pay company car tax based on the BIK value. The company will have to pay Employer's National Insurance Contributions on the BIK value.

The calculator is tailored for a typical small company where a director may use the salary & dividend method to withdraw income. This option may become inefficient for tax purposes in future tax year, however we will update the calculator to a full salary option at that point.

Try the calculator out below to see how the taxes and differences work out.

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Try our Company Car Tax Calculator to see tax rates and calculate for currently popular vehicles.

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