Please can someone explain the pros and cons of contract leasing to me

[Simblythebestie]

Hi all
Dh and I run a business and like everyone else have had to pay our yearly taxes this week.
Our accountants have suggested, to offset some of the corporation tax, that we perhaps look into hiring a company vehicle through the company, a contract lease. We could spend up to £1k of our current corporation tax fund on this, if there are no caveats about how much we can spend which I'm assuming there are not.
Our vat bills are high so we still contribute a lot to hmrc, etc.
For info, we have one car we use a lot for work meetings and another family run around car which feels like it could be on the conk. So a new hired car for work use only could be a good idea.
Please can someone tell me about the cons.
Presumably if the business stalled for any reason we could just hand the hired car back?
Is there a lot of strictness with monthly miles limits?
Tia x

Er, why not trust your accountants rather than randoms in the ether?

Was just looking for some situations that might crop up that our accountants hadn't mentioned. Accountants didn't spend long explaining contract leasing and pitfalls.

Also a dealership is not going to run through ant downsides...

You still pay the majority of the cost. You only get tax relief on the cost at your tax rate. The amount you spend on the car doesn’t all come off your tax bill! There’ll also be taxable benefit in kind on you personally. You need to get the accountant to give you some proper figures outlining pros and cons.

I don't think you can "just hand the car back" if you've taken out a contract over several years. Not without a penalty at least.

So my understanding was that I'm lieu of paying corporation tax you can spend say £600 on a contract lease through the company. So hire the car, basically.