The drastic changes brought to our day-to-day lives by the COVID-19 pandemic may have convinced some of us that traditional car transport won’t be quite as important in the years to come as it once was. After all, many of us are still using video-conferencing software – such as Zoom – for conducting socially distanced meetings with clients and colleagues alike.
In truth, though, certain things in business never really change, and it is almost guaranteed that the traditional office – and indeed, the company car – will remain a staple of our lives for a while yet.
That much is shown by the fact that over the course of 2021, some 844,677 company cars were registered to fleet and business in the UK, even if this did represent a 4.5% decline from the figure recorded for the previous year – a situation driven partly by the global shortage of computer chips, and not just the pandemic.
Putting all that aside, though, company cars are likely to continue being important for businesses up and down the UK – including for staff commuting and those crucial in-person visits to clients’ premises, for which you will want to present the best possible impression.
So, to answer the above question – can you get car finance through your business? The short answer is, yes you can – but here are some of the key things you need to know.
Whether you buy personally or through your business, we can give you a great deal
There are a lot of reasons why, whether you operate in business as a sole trader, a partnership, a small-to-medium-sized enterprise (SME), or even a larger corporation, you should consider business car leasing through a car finance specialist like Car Finance Genie.
One of those reasons is the fact that business car leasing can be a great way to equip your entire workforce with impressive vehicles for their day-to-day business activities, without the need for you to invest all that much money up-front. Plus, such an arrangement could enable your staff to switch to a new car every few years, so that they can always be driving fairly up-to-date machinery.
Then, there’s simply the fact that we are renowned for the competitiveness of our deals when it comes to car finance for those buying on both a personal and business basis – helped by the formidable dealer network we can call upon.
What about the tax aspect of company cars?
As Autocar explains, the whole field of company car tax is horrendously complicated, and it seems that changes to an already-confusing system are being made pretty much each and every year. So, we won’t spend too long on this subject – the accountancy firm Brookson, for example, provides a great rundown of the tax implications of buying a vehicle through a business.
The GOV.UK website also sets out helpful information on what a company car can mean from a tax perspective, pointing out that you might be able to reclaim all of the VAT on a new car if you use it exclusively for business purposes.
The site adds that if you choose to lease a car, you can usually claim 50% of the VAT – potentially rising to all the VAT if the car is only used for business and isn’t available for private use.
There you have it – in summary, yes, you can obtain car finance through your business! And with our knowhow and assistance here at Car Finance Genie, we can make sure you get only the best possible deal for both your own needs, and those of your broader business and workforce.