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Self assessment and a lease car?

Krakkkers · 2025-10-07 23:40:36

I am a sole trader with a small ebay business turning over maybe £750 - £1000 a month. I need a new car which would be for personal and business use and am looking at leasing a car for the first time. I only do around 1100 miles a year for business and have claimed the simple mileage allowance on my latest self assessment…

Comments

Jeremy535897 Posts: 10,808 Forumite

8 October 2025 at 10:19PM edited 8 October 2025 at 10:20PM

Krakkkers said:

Ok so i can only claim my tax relief on the element of the lease payment that does not include VAT.
I am new to this so learning all the time.

I am assuming that you are not registered for VAT, so you claim expenses VAT inclusive, which means you recover 20% of 85% of the gross leasing costs, and 20% of the gross petrol, repairs etc.

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