A common misconception is that if you are self employed you can’t get a novated lease. This can often be wrong! We explain how.
A novated lease is a product that is for employees. It is an employee benefit. So you are sitting there thinking, I am self-employed but I want a novated lease. Stitch up is what you are thinking. We know.
Not the case! We will run over how you can still get the benefits of a novated lease if you run your own company or business.
If you are self employed and pay yourself a wage (like an employee) you can get a novated lease, you will just need to do a few extra steps to prove your earnings to the finance or bank providing the lease.
Firstly, you need to be an employee of your own company or business. If you only pay yourself directors fees or draw straight from the business, you will not be able to get a novated lease.
Most regular employees of a company will just have to provide payslips to prove their earnings and employment; however if you are self-employed you will need to provide some extra information. It will vary from bank to bank but some of the things they might ask for are:
– A copy of your bank statement proving the money coming in
– A recent personal tax return
The reason they ask for this is just to make the bank comfortable that they know you are earning what you say you are earning as an employee of the company.
It is really that simple. The moral is, it is an employee benefit. So even if you own the company but pay yourself as an employee and pay PAYG tax to the ATO, you can indeed apply to get a novated lease!
Find out exactly what a novated can do for you! Request a quote today, speak to a leasing expert and they will prepare a free quote so you can see the numbers in black and white.