The drastic changes that the COVID-19 pandemic is bringing to our daily lives may have convinced some of us that traditional car transportation will not be as important as it once was in the coming years. After all, many of us still use video conferencing software — like Zoom — to conduct socially distancing meetings with both clients and colleagues.
In reality, however, certain things in business never really change, and it’s almost guaranteed that the traditional office – and indeed the company car – will remain a staple of our lives for some time to come.
This is evidenced by the fact that some 844,677 company cars were registered with fleet and business in the UK over the course of 2021, even though this represented a 4.5% decrease from the previous year’s figure – a situation that was partly caused by the global shortage of computer chips, and not just the pandemic.
Aside from that, company cars are likely to remain important to UK businesses, including for staff commutes and those crucial in-person visits to customer premises, where you want to make the best impression possible.
So, to answer the above question – can you get car financing through your company? The short answer is, yes you can – but here are some of the most important things you need to know.
Whether you buy in person or through your company, we can give you a lot
There are many reasons why, whether you are a sole proprietor, a partnership, a small to medium-sized business (SME) or even a larger enterprise, you should consider business car leasing through car financing. specialist such as 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, without having to invest all that money up front. Moreover, with such an arrangement, your employees can switch to a new car every few years, so that they can always drive with reasonably up-to-date machines.
Then there’s the fact that we’re known for the competitiveness of our deals when it comes to car financing for both personal and business purchases – aided by the formidable dealer network we can rely on.
What about the tax aspect of company cars?
Such as car explains that the whole area of company car tax is terribly complex, and it seems that changes are made every year to an already confusing system. So we won’t dwell too much on this – for example, the accounting firm Brookson gives a good overview of the tax implications of buying a car through a company.
The GOV.UK website also has useful information on what a company car can mean for tax purposes, and points out that you may be able to reclaim all the VAT on a new car if you are using it solely for business purposes.
The site adds that if you choose to lease a car, you can usually claim 50% of the VAT – possibly up to all the VAT if the car is only used for business and not available for private use.
There you have it – summed up, yes, you can get car financing through your company! And with our know-how and assistance here at Car Finance Genie, we can ensure you only get the best deal possible for both your own needs and those of your wider business and workforce.