Sorry if you gone and dun it by now, the type of agreement that youtake out depends on the type of vehicle you need, wether or not ownership or usage is important, and your own circumstanaces ie profit generating and if you are Vat registered,
if you lease a vehicle ( say for this purpose a van ) you would be able to claim back the VAT if paid for up front, or claim back the VAT as you go along if you spread the VAT. This is the same as if you purchase the van - you pay the VAT then claim it back. (Subject to being VAT registered)
The other thing to consider is do you want the vehicle to be an asset ( aleit a reducing one ), maybe because your are working a business from home with little or no business assets, or just an outgoing cost (lease). Lease would be the only method of "Off Balance Sheet Fundiung"
If you lease you can offset 100% of the rentals against your taxable profit - if you purchase (HP or Cash) you can write down (offset against taxable profit) up to 25% of the purchase price of the vehicle. If you purchase on a loan / HP you can also offset the interest charges.
At the end of a lease you may not purchase the vehicle - it has to be sold to a third party ( not the company selling to the director ), so you would probably extend the period by paying a nominal (peppercorn) rental.
If you are thinking of buying a car the question would be complicated further by the decision of wether to buy it in your name and claim back business mileage from the company - avoiding paying personal benefit in kind tax for the car and possibly for the fuel, or purchase through the business and then claim the tax benefits for the business.
If buying a car you cannot claim back the VAT on the purchase price - and can only write down 25% of the value up to £12,000.00. and on lease you can offest 100% of the rentals on up to a £12k car and 50% thereafter (half the excess rule).
Lease is a non purchase agreement - many agreement are called lease ie: lease purchase, personal lease purchase, - A true lease would be a Finace lease or contract hire.
I would suggest that once you have decided on the vehicle - talk to your accountant and explain to him what you would like to achieve from it.
I hope that helps a little, please email if you need any further information.
Regards
Cherie
cherie@selecthomeclean.co.uk 