Can my client claim an existing loan as an expense? It is a loan set up in the client's name (not his Company name)prior to him commencing trading, and is for the financing of a vehicle which he now uses solely for business use.
From what i can read of your question the client has a vehicle that they own in their own name which they have a personal loan to finance but they use the vehicle only for business purposes.
Either the vehicle is owned by the company or individual.
If owned by the company it would need to be transferred over to the company as registered keeper and brought into the accounts at a reasonable value with the other side being a movement to the directors loan account. The company could then pay the director the monthly payments together with interest and the company could claim relief on the interest. Alternatively you could ask the loan company to transfer the loan to the companys name.
If owned by the individual then could put through business mileage at 45p a mile for the first 10k miles in year and 25p per mile thereafter (without any tax consequence)
