Tax relief on lease motor vehicles

mozr

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Aug 16, 2007
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#1
Hi.

My old banger (no, not the wife) has had it, and I'm looking at lease hire through my business.

Question: Do I get full tax relief on the monthly rental?

I know petrol becomes a grey area, and I'm not that arsed about it at the moment. It will be used for private use most of the time (as I rarely have to go out for work purposes during working hours). I just want to know whether I get tax relief on the car itself.

Cheers.
 

dexyweescot

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#2
should do m8. i lease my vans and i put them in as expenses so u will get the tax relief from it and the fuel or miles whichever way u do it, and any other cost it willoccur including tax, mot and ins. evrything that comes out of your own pocket for your business u will get the tax relief from it....
 

Munkey

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#3
I'm not up to date on lease car rental and tax relief but IIRC the most tax effective way of using a car for company use is to own the car and claim back the mileage. The car you'll drive and its CO2 emmisions will have a bearing on the actual monies that you can claim back.
 

mozr

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#4
Thanks.

I will certainly take C02 emmisions into consideration when I choose the car.

Its a strange situation really. Im not bothered about owning a car. Most people I know are happy to break even after a minimum finance agreement is finished and they get a newer car.

Leasing a car through the business hopefully gives me the legitimacy to claim back the full rental/MOT/etc. (IE, goes through my books as a monthly expense, nice and neat) As I said, I will actually use the car 'for work purposes' rarely.

I'm just after a way of getting a car and paying for it before net profit at the end of each month.
 

dexyweescot

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#5
just put it all through the business m8. its up to hmrc to prove u aren't using it. my vans are well used for business 24/7
 
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