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Post Info TOPIC: VAT on Private Use of Lease Vehicle
Wella


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VAT on Private Use of Lease Vehicle
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Can some one put my mind at rest?

I have a client who started leasing a new car (Freelander) last year. When he signed up to the contract, the salesman told him he could claim 75% of the VAT back, with 25% being disallowed for private use.

This set a little bell ringing in my head (at least it blocked out the voices) as I thought it was only 50% claimable. When I double checked the HMRC website, I can only find reference to 50% allowance, and nothing for 75%!

Does any one know of any other allowance, i may have missed regarding lease vehicles (other than vehicles used exclusively for business).

Cheers
Bill

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Flex Accounting Services


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Hi Bill, it is 50% if used for private and business. The salesmen probably told your client that to make him buy the car !!

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Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
Wella


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Cheers Bev

That's what I thought too.

Luckily it's not a great amount but non the less the client has been under paying VAT for the last year. Fortunately for him he has also made another error in his fuel scale charge (didn't change it from his previous vehicle) which meant he over paid on that so it compensated most of it.

Bill

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Flex Accounting Services


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lucky he's got you to sort it all out for him then !
Bev

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Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
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