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Post Info TOPIC: VAT on lease car
minnehoma


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VAT on lease car
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I have a work colleague that leases his car through the company.

Basically the company pays the lease company and the employee pays the company back.

My question is can the company claim all the vat back on the car lease or only half?

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Sue T


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Hi

He can only claim back half,I am presuming the car is also used for business use as well as private use.
If all business use he can claim back 100%.

Sue

-- Edited by Sue T on Thursday 10th of June 2010 07:24:23 AM

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BackOfficeGroup


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Sue

I agree, however to prove the car is used soley for business is difficult, as if the person uses the car to go home in the evening, then it is not 100% business use and they are getting hot on this at the moment.

I would only claim 50% of the VAT on the lease, that is if he uses it at all for business??

P

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RobH


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I'm not so sure about this. I tend to think that if the employee is paying the company back, is he trying to avoid the vehicle being a company car? If that is the case then the car is privately owned and I wouldn't think any vat can be claimed. If it is a co car and the repayments are just a loan to the company and he is paying P11d tax and Ni then I would also go with the 50%.

Rob

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Rob
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