Car leasing for small business ?

rhylbloke

Hi, I have been running my own small business for a number of years, and as my income and expenditure items are pretty basic, and I'm nowhere near needing to be VAT registered, I draw up my accounts as a sole trader on an income and expenditure basis.
All my business consists of visiting people in their homes, so a car is essential. My business mileage amounted to 60% of my total.mileage last year, so I charged 60% of all my vehicle running costs as an expense. My car is now six years old and I would like to change it. If I were to lease a vehicle ( under 130g co2) on a two or three year personal lease, would I be correct in charging 60% of the leasing costs, including the upfront payment of the equivalent of 9 months leasing ?
Thanks

AdrianC

I strongly suspect you'd be best off going with the HMRC mileage rate.

rhylbloke

Ok, thanks. if the current rate is 45p, that means the 2,000 business miles I did last year would work out not much different to the almost £900 I claimed as 60% of all the running costs.:think:

AdrianC

Damn sight simpler, damn sight easier to justify.

rhylbloke

Definitely simpler, but it's not that difficult to work out (say) 60% of all my car expenses, I just wondered if I could claim some of the leasing ( as opposed to h.p. or p.c.p. ) costs.
Thanks anyway.