There are literally hundreds of thousands of self-employed people in Britain. Apart from anything else, this shows that we are a nation of people that has an entrepreneurial spirit within us all!
For many people, being self-employed is the best way to earn a living, because it means that we have the freedom to work for anyone of our choosing, and it eradicates the monotony that you would have otherwise got by doing the same job for the same company at the same location on a daily basis!
Virtually all self-employed people need a vehicle to visit clients and suppliers on a regular basis, with most of those people requiring a car rather than a commercial vehicle such as a van or pickup truck.
One question that a lot of self-employed folks ask is whether it is a good idea to have a company car or not. More often than not, the answer is usually “no”. Here’s why:
Some fleet companies only deal with limited companies
There isn’t a great deal of people that are self-employed and run their own limited companies. Many people are advised to set up a limited company because of the tax benefits that it offers, but also because some business will refuse to deal with sole traders.
This is somewhat ironic as a lot of limited companies consist of just one director, who so happens to be the sole employee of the company!
Company cars cost more than privately-owned ones
Thanks to things like benefit-in-kind tax, it actually works out to be more costly getting your business to pay for and own a car than for you to own the car yourself personally. Lease deals can be just as versatile for individuals as it is for businesses, and in many cases it is easier and cheaper to buy a car under your own name.
For example, business fleet companies require a deposit of several months’ worth of instalments, whereas for personal financing and leasing all you need is a small deposit upfront and you can tailor the finance agreement to your specific needs.
You can claim back money through your business
The great thing about owning your own car and using it for business is that you can claim back mileage allowance expenses through your business, which in turn will lower your tax liability, something that businesses of all shapes and sizes do for all of their employees.
It also means that you won’t have to personally bear the cost of petrol or diesel in your car for business use, so this is another way that you are saving money.
It’s easier to get a car as an individual
Lots of websites sing the praises of getting cars through the business, but in reality as a self-employed person you will find it hard to get car finance this way. However, if you get a car as an individual through somewhere like Sandles car supermarket, you will find it much easier to get your next workhorse on finance.