Vehicle Finance
Distributor of Work Clothing in Warwickshire
Vehicle Finance
Many companies are trying to convert their operations to a Carbon Neutral position. This is critical for the climate and makes good business sense. It also creates a good impression with their suppliers and clients.
We worked with this client to look at the best way of financing some new electric cars. Having looked at all the current tax reforms and legislation it came as a surprise that not only was this good for the environment and company it also meant the return of the company car benefit. Only those of a certain age will remember how company cars were always financed through the company and the drivers experienced very little benefit in kind unlike the current environment. But…
In 2020 we were able to finance the car on a Lease Purchase agreement over 3 years spreading the cost of ownership. The company gained 100% Capital allowances on the £50,000 car in year 1 saving a large chunk of Corporation Tax. They also had security of ownership at the end to dispose of or exchange for a new electric car down track. But as the driver they no longer have to pay the high benefit in kind with tax of only a few hundred pounds versus the £1000 s incurred before. Agreat solution all round.
I’ve known and worked with the team at Blue Sky Finance for over 20 years. They offer exceptional industry expertise and service standards that we demand for our clients
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