Lease hire?

Question

Just started up in business. need good vehicle. if i lease hire can the whole cost of it be claimed back through tax im not v.a.t registered

Answer 1

If the vehicle is a van or a car costing less than £12,000 then you can claim the whole of the leasing payments as a deduction from profits.

But if it is an "expensive car" then there is a limit to the deduction you can claim. A proportion of the hire charge will be disallowed and this proportion is calculated as -

(retail price - £12,000) / 2
---------------------------------
retail price

Answer 2

you dont get the cost back. you just get tax relief on that amount as a business expense.

vat is different matter - if ur vat registered u can claim back the vat, but u have to charge ur customers vat.

if u want more advice message me.

Answer 3

Leasing is a rip off. Buy.