How to Lease a Vehicle if You're Self-Employed

How to Lease a Vehicle if You’re Self-Employed (UK Guide 2025)

Vehicle Leasing is a fantastic way to drive a brand-new vehicle whilst benefitting from various potential savings as a self-employed individual. We deal with customers likely in the same situation as you are daily.

Can you lease a vehicle if you’re self employed?

Quite simply, yes. Whether you are a freelancer, contractor or sole trader, leasing a vehicle is an effective way to get a new car or van for less with flexible and affordable solutions without the large upfront cost that comes with buying.

Leasing allows you to manage your cash flow more efficiently with consistent monthly payments and potential business tax advantages.

What’s required to apply?

Typically, you will be applying for a business lease so, usually we require the below:

·       Proof of ID and address – a valid driving licence or passport, plus a recent utility bill or bank statement.

·       Proof of income – recent bank statements, SA302 forms, or HMRC tax returns showing your trading history.

·       Business details – your UTR (Unique Taxpayer Reference) number, or company registration number if you operate as a limited company.

·       Bank details – for setting up your direct debit.

Tip: If you are newly self-employed and don’t yet have a full year of accounts, you can still apply. Just be prepared to provide extra evidence such as savings statements, a personal guarantor, or signed client contracts to demonstrate your financial stability.

How the Credit Check Works

For any leasing agreement, we will need to run a credit check, either on a personal credit profile or your business depending on your application type.

The leasing provider will then be able to make an informed decision on your ability to make monthly payments. Typically, we find a good credit history often results in a better chance of approval but even if it isn’t, there are options available.

It’s worth noting, if your business trading history is less than two years, you may find a personal lease is a better route to driving a new car until your business becomes more established.

Business vs Personal Leasing: Which is Right for You?

A business lease does usually make financial sense for most use cases, especially if you are VAT-registered as underlined above. These costs can then be offset against your taxable profits.

Tax Benefits of Leasing as a Business Owner

Business Leasing can provide potential tax efficiencies such as:

·       VAT savings: if VAT-registered, you could claim up to 50% of the VAT on the finance element of your lease payments plus 100% of maintenance if included in your agreement

·       Expenses – Lease rentals can see offsets against taxable profits as an allowable business expense

·       Steady cash flow – fixed monthly payments make it easy to predict and manage the cash flow and business costs

We always recommend checking with your accountant to confirm which tax benefits apply to your circumstances

How to find your next vehicle lease

Leasing with us is simple. Our leasing consultants based in the East Midlands will support you throughout the whole process from enquiry to delivery and the length of your agreement.

1.      Browse our latest business lease deals

2.      Choose your preferred term, mileage, and initial payment

3.      Submit your application online – our team will be in touch to discuss with you

 Explore our latest business car lease deals to find the perfect match for your needs.