At this stage of the economic cycle, more and more people will be tempted into running their own business. There are already over four million small businesses in the UK and a problem that they all share is funding their cars from start up.
Your going to want to keep every hard earned, or saved, penny you can in your business. But, if you need a car, then you have to find a way of financing it.
Initially, it makes a lot of sense to use your own car that you already have, if in the end the business doesn’t work, then you have continuity.
Most people do not know that they can claim 45p per mile for business mileage up to 10,000 miles per year and this £4500 per year, tax and ni free, is your entitlement full stop. Any unclaimed pence per mile can be added to your tax return. After 10,000 miles, the rate drops to 25p. Be aware that the issues of duty of care and of proper maintenance still apply. Also, discuss with your insurance company the fact that the car has some business use.
Another option is daily rental, if you have a good relationship with a local company, this is something that you can do on a need basis.
Once established for a little while and getting really busy, you may need to talk to us about high mileage leasing, something that we specialise in and something that hopefully will be really useful to you. This would take the form of business contract hire, which will give you fixed costs and you can even include your servicing and tyres. It will take away all the fears of acquiring and then disposing of your vehicle and leave you to get on with running your business.
You will decide on the length of the contract, the suitable mileage and your chosen car, what CarLease UK will do is give you the quality of service that you give to your customers.