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.