Business Contract Hire Car Insurance: How Does it Work?
Remember, it’s your responsibility to insure your lease car – check out our full guide to get clued up!
With business car leasing you, and your awesome team, can drive a shiny new car every few years and even claim the VAT back. Whether you have a recruitment company or a photography business – you want a BMW business lease or a Tesla business lease – we’re here to do everything for you, so you can just focus on your day job!
Business car leasing enables a business to lease a car, at a fixed monthly cost and for a set period all whilst claiming up to 100% of the VAT back.
With a ZenAuto business lease you can order your ride completely online. Then, when your car’s delivered, the business pays monthly for it, and you get to swap it for a new one every 2 to 4 years.
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If you want to lease a business car with us there are a few requirements you’ll need to meet before we can get you in the driving seat:
Good question! We’re all about making the right decision, whatever that may be. If you know you’re going to need a car for work for at least a few years, you’re confident the business can pay the monthly payments for the period of the lease and you like the sound of focusing on your day job whilst the car experts handle everything, then we could be your perfect match.
If you want to talk it through and ask a question or two, you can reach our New Car Consultants on 0113 468 5377 (option 1) or email [email protected]. But remember it’s always best to speak to your accountant or tax advisor too, as they’re the financial experts!
Remember, it’s your responsibility to insure your lease car – check out our full guide to get clued up!
Just hit the button below to find out everything you need to know about a business lease with ZenAuto.
Grab a brew and have a read through to get up to speed with the latest ULEZ rules…
It’s time to put your stamp on things with our fully customisable cars. You have the ultimate control to choose the spec, any optional extras, and the colour of your new car.
You’re busy, we get it. That’s why there’s no paperwork, all you need to do is sign on the digital dotted line and we’ll sort everything else.
Get breakdown cover, road tax, and the manufacturer’s warranty included in your lease. Plus, we’ll deliver the car for free to Mainland GB – legends, we know.
From reminders about when your service is due to getting your P11D figure straight to your inbox for your tax self-assessment, think of us as your car PAs!
Business car leasing is a type of car leasing agreement set up specifically for businesses – it enables the director of a business to lease a car (a long-term rental of 2-4 years) for themselves and/or their employees. The main benefit being that the business can claim back up to 100% of the VAT on the monthly rental payments.
Ready to start your ZenAuto journey? Browse our range of car deals and find your perfect wheels! Or, if you need some more info on all things business leasing first, just head over to our dedicated hub.
To get a business lease with us, you need to meet the following criteria:
Got a few questions? You can reach our New Car Consultants on 0113 468 5377 (option 1) or email [email protected].
It’s 100% online and you’ll get through it faster than it takes a Tesla Model Y Performance to go from 0-60mph (which is very, very fast!). In a nutshell, you order the car, go through the credit application stage, sign the agreements, complete the ID checks, and then get excited for new car day.
For the full lowdown check out our handy guide.
Ready to begin your ZenAuto journey? Browse our lease deals to find your next set of wheels! If you need help choosing the right car for you, give our New Car Consultants a call on 0113 468 5377 (option 1) or email [email protected].
With us, the process is pretty much the same for both – you follow all the same steps whether you’re a business or personal leasing customer.
Though there’s no real difference in the process, there are still four big differences:
Yes, but you can claim up to 100% of it back in your business’ VAT Return. Each month the business will pay a monthly rental payment which will include VAT fees. Then, if you can prove that the car is only used for business purposes (this excludes commuting to and from work) the business can claim 100% of the VAT back. If it’s used for a mix of business and private journeys too, the business will only be able to claim 50% of the VAT back.
Plus, if you opt for our shiny maintenance package, as well as enjoying all the benefits of the package, your business can claim back 100% of the VAT on the monthly maintenance payments. This is regardless of whether the car is used for just business trips, or private ones too.
Interested in a business lease but want a bit of steer from the car experts? Give our New Car Consultants a call on 0113 468 5377 (option 1) or email [email protected] – they’re a friendly bunch!
Business car lease costs vary depending on the make and model of the car, and the amount of mileage. However, the typical costs include:
Then there’ll be other things to consider – like setting up a fully comprehensive policy and whether you want to add GAP insurance for extra peace of mind.
Another thing to note is that although your road fund licence is included in your lease, we reserve the right to increase your monthly payments if the road fund rate for your car ever increases during your lease. We’ll let you know if this is ever the case though.
It’s the businesses’s responsibility to sort the insurance, not the leasing company – the insurance policy should be under the businesses’ s name. A fully comprehensive policy needs to be in place from the day the car is delivered, to the day it’s collected at the end of the lease agreement.
If the business is leasing more than one car it might be worth checking out fleet insurance, so you can insure all your company cars under one policy and make it easier to keep track of them. GAP insurance is also recommended to save yourself money if the car is ever damaged beyond repair. You can read all about insuring a business car over in our guide.
As an employer you need to tell HM Revenue and Customs (HMRC) if you make any company cars available for private use by directors or employees which AREN’T payrolled. When a company car is used for private use, it becomes taxable. So, you need to submit a P46(Car) form to HMRC whenever you:
If an employer gives directors and employees any benefits outside of payroll, the employer must complete a P11D form for HMRC. The amount on the form represents additional employment income and is taxable. The form provides the HMRC with details of any benefits (such as company cars that are used for private use), so that the tax and national insurance owed by the employee can be calculated.
The P11D value is separate to the P11D form (confusing, we know). The P11D value is used to calculate how much annual company car tax an employee needs to pay when the car is used for private trips too.
The P11D value of a car is the list price, including VAT, any optional extras and delivery charges if applicable. It doesn’t include the car’s first registration fee or annual road tax.
When a company car is used for private use as well as business use, HMRC class it as taxable income. This type of non-monetary benefit is called Benefit-in-Kind tax (Bik). BiK is a tax on employees who receive benefits or perks on top of their usual salary, such as company cars that are use for private trips.
Every car has a BiK percentage banding, which is based on how much CO2 the car emits, its fuel type and the emissions standard it meets. The lower the emissions, the less you’ll have to pay – electric car lease deal anyone?
One of our team will talk to you about your indicative BiK and P11D value before you sign your agreement. However, we can’t provide the exact figures until once the car is delivered to you. If any elements of the P11D change between ordering the car and receiving delivery – such as the list price increases or decreases, or the optional extras do – this will impact your BiK calculation.