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Vehicle Contract Hire/Leasing
Lizardland
Posts: 9 Forumite
in Cutting tax
Anyone knowledgeable about the tax breaks on leased vehicles?
I'm considering leasing a vehicle for my business. The HMRC website is as clear as mud, I know that the rental is allowable against profit for vehicles costing £12k or less with a sliding scale for those over that. However, does this apply to commercial vehicles i.e. a pickup? Is a commercial 100% allowable?
Also, I take it that the 50% VAT allowance only applies to commercials and not to cars?
Cheers,
Stuart
I'm considering leasing a vehicle for my business. The HMRC website is as clear as mud, I know that the rental is allowable against profit for vehicles costing £12k or less with a sliding scale for those over that. However, does this apply to commercial vehicles i.e. a pickup? Is a commercial 100% allowable?
Also, I take it that the 50% VAT allowance only applies to commercials and not to cars?
Cheers,
Stuart
0
Comments
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Hi Stuart,
As far as I can tell, the £12K thing doesn't apply to vans.
In addition, the 50% VAT reduction is only if there is private use of the car.
All the info I've looked refers to cars and I have not found anything on this subject for leased vans. In summary, I think that 100% of the rental is allowed for tax and 100% of the VAT is recoverable. However since I am not 100% certain, contact HMRC for verification from them.Today is the first day of the rest of your life0
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