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Are you considering leasing a car for business?

2014
18
NOV

Did you know that you can’t reclaim the VAT paid when purchasing a car even if you use it mainly for your business - unless your business is a driving school or taxi service?

However if you lease a car for use in your business either for your own use or an employee’s use you can reclaim 50% of the VAT charged on the payments.  You must be sure that you have a lease arrangement i.e. you are renting the car and not just paying for the purchase of it over a period of time.  The cost of leasing is a trading cost rather than an asset as you won’t own the vehicle.

If you do have a lease arrangement you can reclaim 100% of the VAT charged on a maintenance agreement just as you would if you paid for servicing the vehicle yourself.

 

 

Related Tags:  Accounts |  Business |  VAT | 
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Unit 21 Portway Business Centre
Old Sarum, Salisbury
Salisbury
Wiltshire
SP4 6QX

e: info@sandrasilk.co.uk
t: 01722 341820