Business car leasing offers many benefits to all kinds of businesses. Car leasing is a fixed term contract for a long-term rental vehicle at a fixed monthly rental price. In many cases, this offers cash flow benefits where the business does not have any large upfront payments. Within a leasing agreement, the business will not own the vehicle. This means that there is no need to worry about depreciation of the vehicle or disposal at the end of the lease. Leasing company cars offers peace of mind, as the vehicles come with the manufacturer’s warranty, road tax and an optional servicing and maintenance package and help to keep staff safe compared to driving their own vehicles for work. Company car drivers also benefit from low benefit-in-kind tax if they chose a fully electric or low emissions car, which also supports the company’s Environmental, Social and Governance (ESG) credentials. Businesses can often take advantage of special terms to offer even greater value, and, during the life of the contract, you can obtain help, advice and support from your leasing broker and leasing company.

In most cases, company car drivers will also use their business lease car for personal use, so long as their company permits them to do so. This is why company car drivers pay benefit-in-kind tax on their company car as HMRC assumes personal use of the vehicle. The business lease car is classed as a benefit to the employee and therefore is taxable. The amount of benefit-in-kind tax payable is dependent on the vehicle, its value and its emissions as well as the driver’s tax band. Currently, company car drivers can take advantage of low benefit-in-kind tax on zero emission electric vehicles, and hybrid vehicles with low emissions. This is to support the UK’s transition to electric vehicles and the road to zero. Moving company cars into electric vehicles from petrol and diesel can also support a company’s environmental credentials.

A business car lease is suitable for businesses, and the lease is taken out on behalf of a business and the monthly payments are paid for by the business. The driver of the business lease will pay benefit-in-kind tax, as driving a business lease vehicle is seen as a company benefit which is therefore taxable as it is assumed it will also be used for private use. However, electric vehicles currently offer low benefit-in-kind tax.A personal car lease is taken out by a private individual in their own name, so will be recorded on their credit file. The individual pays for the monthly rentals each month for the term of the lease.Both business and personal leasing agreements benefit from the manufacturer’s warranty, road tax included, the support of your leasing broker throughout the lease and there is the option to take a maintenance and service package as part of one monthly payment.

If you drive a business lease car and there is any form of private use, then the driver will pay benefit-in-kind tax (BIK). However, business lease cars often offer great value for money, even with the cost of the benefit-in-kind tax factored in. This is because business lease cars often benefit from fleet discounts, they come with the manufacturer’s warranty, road tax and an optional maintenance package as well as creating peace of mind for employers as they know their employees are driving new, safe vehicles. The amount of BIK paid depends on the value of the vehicle, its emissions, and the tax band of the driver. Drivers can take advantage of low benefit-in-kind tax on electric vehicles, as the UK transitions to low emission vehicles. Moving company cars to electric vehicles also supports the organisation’s environmental and sustainability credentials, and may even save on the company fuel bill.

If your business lease car or van has a service and maintenance plan, you vehicle can be booked in to an approved garage or dealership workshop by logging into your online portal for your finance provider or caller your finance provider’s Driverline. They will arrange a convenient time for your vehicle to be serviced or for an MOT to be undertaken. It’s important to service your vehicle to the manufacturer guidelines to avoid any end of contract charges.If your business lease does not have a maintenance plan, it must serviced to the manufacturer’s guidelines at a VAT-registered garage using genuine manufacturer parts. You should maintain all the invoices and paperwork and return them with the car at the end of the business leasing contract.

Once your company has placed the order for your new business lease car or van, you will receive regular updates on when your new vehicle is expected to be delivered. If the vehicle is already in stock, it could be delivered within 1 -2 weeks. If the vehicle is a factory order, lead times will vary and depend on the manufacturer’s production schedule.The delivery of the new business lease will be made at a convenient time, and will need to be checked over to ensure there are no issues on delivery. The company should ensure that the vehicle is insured on the day of delivery and informed us of the name of the person taking delivery along with relevant identification for a secure handover of the vehicle.

At the end of the contract, your business lease vehicle will be inspected in line with the BVRLA Fair Wear and Tear Guide. It’s worth ensuring that the vehicle is clean both inside and outside, the servicing and maintenance is up to date and the tyres have legal tread. There should be no warning lights on the vehicle; you should return both sets of keys and make sure the parcel shelf is in place. If any of your personal information has been put into the navigation or infotainment systems, it’s also a good idea to delete it out before collection. If you have any paperwork from servicing or repairs, return them with the vehicle as well

A private individual must be a minimum of 18 years old and hold a full driving licence to be eligible to apply for a lease vehicle. For business leases, the individuals driving the vehicles must be covered on the company’s insurance and hold a full driving licence. Providing the individual or businesses is approved for credit and has passed the affordability checks, the driver has a full driving licence and has the correct car or van insurance, there is usually no upper limit to lease a car. There is an exception to this, in certain cases, on Total Care fully-insured lease vehicles. These vehicles are fully insured as part of the monthly lease cost, and there may be a minimum or maximum age limit on the ability to lease these types of vehicles due to the nature of the insurance included as part of the lease agreement. Your Synergy Account Manager can chat this through with you if required.