Belmont Vehicle Leasing

On this page we will summarise the following:
  1. Car Tax/Vehicle Excise Duty
  2. Displaying of a Tax Disc
  3. Company Car Tax – Benefit in Kind
  4. Matching the Right Funding To Suit Your Personal Requirements
Car Tax / Vehicle Excise Duty 2016/2017

Vehicle Excise Duty (VED) is an alternative term for Road Fund License (RFL), or Car Tax. This is built into your monthly rentals, so you’ve no need to worry about paying it annually.

The amount of RFL you pay is dependent upon the levels of Carbon Dioxide (CO2) that your vehicle emits.

The Table below illustrates how cars with lower emissions pay less.

Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £310 supplement for five years.

For more information regarding the 2017 VED changes please visit www.gov.uk/newvehicletaxrates

Displaying of a Tax Disc

From 1st October 2014 you are no longer required to display a paper tax disc. Your lease vehicle will still be taxed, but it may not display a disc.

You can check the vehicle tax status of any vehicle online at www.gov.uk. You will need to provide the vehicle number plate and make.

Company Vehicle Benefit in Kind (BIK)

Benefits in Kind (BIK) are benefits which directors of employees receive from employment which are not included in their salary or wages. Sometimes, these are also called “perks” or “fringe benefits”. A company car is seen as a major perk by the taxman: and as soon as you use it for a personal reason (including commuting), it is viewed as a taxable payment.

​To calculate how much tax you’d have to pay on a company car, click here for a Benefit in Kind calculator, or:

Matching The Right Funding to Suit Your Personal Requirements 

Of course we want you to use our services when you are acquiring your vehicle(s). We also want you to do what is best and right for your circumstances whether that is from a business perspective or a personal one.

There are decisions to be made and we feel you can best make them if properly informed. We endeavour to be honest and forthright with any advice or assistance we give to you, our customers, and take into account circumstances specific to you hence the creation of this information page on our website.

When making your decisions many factors are relevant: Tax implications, Cash flow, time of year, affordability, vehicle desirability.

Tax implications

As a business you can reduce your tax liability by using the allowances available from vehicle acquisition. Tax efficiency can have a strong influence on the type of facility you choose. Also bear in mind however that the utilising of allowances is relative to the liability the business faces. When you acquire a car on a finance lease or a contract hire agreement they are classed as operating leases. The rentals you pay are tax deductible against end of year profits. The system is based on CO2 output and does not take into account the full cost of the vehicle. We are happy to assist but please also confirm with your accountant.

Cash Flow

Monthly payments or rentals are taken by DD as efficient cash flow management ensures that you have the ability to make them. Leasing allows you the use of the vehicle without using up large amounts of your cash that may be better utilised elsewhere in the business. It’s a well know fact that more businesses fail as a result of inefficient cash flow management than through lack of profits.

Time of year 

As a business you are no doubt aware that the point at which purchases are made has a direct bearing on any tax allowance that can be claimed. If unsure ask your accountant for advice.

Affordability

When you contact us you will, no doubt, have an idea of how much you want to spend on your new vehicle. It is important that you research to get a feel for the market and to check that there are leasing deals out there for a car that you can afford. It’s pointless opting for a top-of-the-line model if you can’t afford the monthly payments. We will always offer impartial and honest advice. However there are times when real one off deals become available with small windows of opportunity and if you are on our mailing list or ask us to make you aware of such events then we will contact you.

There are car leases out there that start from £99 per month, so there should be something out there to suit you, whatever your budget.

Vehicle Desirability

It’s a fact that leasing will allow you to drive makes and models of cars that you may not ever be able to afford to buy outright. The low deposit, affordable monthly rentals and no large balloon payments at the end of the primary term are all attractive features of car leasing. This may be a reason why one in four cars in the US is a lease car. The UK is catching up fast and smart motorists are getting wiser to the fact that owning a depreciating “asset” is not always the best way to acquire your vehicle.