As a small business owner, you know that every penny saved goes toward increasing your bottom line. Unfortunately, everywhere you turn you are making large payments and this is consistently chipping away at the profits you could be making. At the moment, you are in need of a new vehicle for your business but are not able to justify the expense. Have you considered the financial benefits of leasing a car for your small business? You can even lease a Jaguar for the prestige it brings at a cost that really does make good business sense.
One of the main reasons so many small business owners don’t invest in vehicles is the VAT they end up paying, which is 20% of the cost of a new vehicle. Sadly, this tax is due whether you buy or lease a new or used car. Therefore, if you purchase a vehicle at £18,000, you will be paying £3,000 in VAT. Now a vehicle at £15,000 makes better business sense, doesn’t it? It can be done if you know how! Did you know that many businesses can reclaim that VAT when it comes time to file taxes? That is something worth discussing with your accountant if you are really interested in driving a new vehicle.Continue Reading