Leased Cars

Cute_'n'_Quirky

When self-employed can I claim the payments made on a leased car as business expenses?

cash99

As already posted on the other thread you started. If the car is being used for business purposes then the proportion of the lease relating to business use will be claimable. Using a vehicle from home to your place of business is not a business journey.

You also need to confirm your self employed status. You do not become self employed by choosing to be so.

Cute_'n'_Quirky

I have been self-employed for 24 years come June - I don't need to check it!

I have also been self-employed AND employed as a teacher through the local county council at the same time, submitting an extra form with my tax return - which is perfectly allowable.

The issue was regarding leased cars - at one time we were not allowed to claim for the payments on leased or contract hire vehicles.

I changed thread to get everyone off the idea of the method I acquired the car since it was proving difficult for folks to grasp.

Thanks to Jimmo we got to the root of the problem.

Fortunately, when I start my new job - within weeks - I will have to have an accountant. I have done all my own accountancy for 24 years and have never had one problem with the Inland Revenue.

dejongj

Cute_n_Quirky wrote: »

I changed thread to get everyone off the idea of the method I acquired the car since it was proving difficult for folks to grasp.

That is not very kind Can't expect an answer you want to hear when you don't give all the facts....And yet again not the full information when the question is posted...

Anyway when you mean lease what kind of lease do you mean as they have very different tax treatment; operational lease (contract hire most likely), financial lease, hire purchase etc...

Based upon your other thread I am assuming it is under motability; so that leaves Contract Hire or Hire Purchase.....As you must be disabled you get instant VAT relief, so that is something you can get back or not pay...

That could complicate things a little and I suggest you get professional advice (HMRC as you state you have such a good relationship...) as Contract Hire is a rental agreement, now for business purpose that is allowable before tax...But you can only claim 50% of VAT, now due to your personal situation you can claim 100% VAT relief which to me reasonably suggest it is a personal benefit and not one for work...This comes down to duality...However you really have to ask HMRC what there view is on it....

Out of interest, if you don't so well the last 24 years, how come you are asking all these questions now?

longforgotten

I have done all my own accountancy for 24 years and have never had one problem with the Inland Revenue.

Have you ever had an Inland Revenue enquiry ?

If you are listed for an enquiry they will ask you to show how the figures in your accounts are calculated, ask for all your paperwork, invoices, work diaries etc. If you have had an enquiry I can then perhaps understand your confidence.

Cute_'n'_Quirky

dejongj wrote: »

That is not very kind Can't expect an answer you want to hear when you don't give all the facts....And yet again not the full information when the question is posted...

Anyway when you mean lease what kind of lease do you mean as they have very different tax treatment; operational lease (contract hire most likely), financial lease, hire purchase etc...

Based upon your other thread I am assuming it is under motability; so that leaves Contract Hire or Hire Purchase.....As you must be disabled you get instant VAT relief, so that is something you can get back or not pay...

That could complicate things a little and I suggest you get professional advice (HMRC as you state you have such a good relationship...) as Contract Hire is a rental agreement, now for business purpose that is allowable before tax...But you can only claim 50% of VAT, now due to your personal situation you can claim 100% VAT relief which to me reasonably suggest it is a personal benefit and not one for work...This comes down to duality...However you really have to ask HMRC what there view is on it....

Out of interest, if you don't so well the last 24 years, how come you are asking all these questions now?

At the moment I am not VAT registered but I will have to be so within the next year or so.

For over 23 years I had my own car, fully owned by myself, with full capital allowance.
I then became disabled, had to give up everything including the profession I loved because of the disability. Had to start all over again. Have got my new professional qualifications. Was given permanent DLA last year and the car arrived in January. Hence the questions.

Thanks very much for your input, it is much appreciated.

longforgotten

cute'n'quirky all the best in your new career

Cute_'n'_Quirky

There is nothing wrong with any of my figures that is for sure - I don't know why everyone on here assumes everyone else is on the fiddle!

I am one of those people who declares every last halfpenny, otherwise I would not be able to sleep!

All is above board and totally legal. I have all the papers/diaries/receipts/mileage etc for the last 24 years - yes, 24 years - I have kept ALL of them!

My new job beckons and I can hardly wait!