I have a client (sole trader) who is thinking of getting a new car through leasing. They have asked me a few questions about this, which I am not sure how to answer. I advised them to check with their accountant, but I think they are looking to change as they are unhappy with how much they charge, so fear that a few simple qestions could result in a bill for a few hundred pounds!
In principle, this is what they want to know :-
1) As a sole trader, would they be able to get a business (as opposed to personal) lease contract for a car, or is that only for Ltd Comp etc,?
2) The car would be used for about 25% business use, the rest private. They currently keep a log of business miles, so that wouldn't cause an issue. (They visit clients providing a Management Consultancy service)
3) What would the tax implications be for them? Would it be benifical, even if they are only puting a percentage of the costs through?
4) -This one is from me - If they went ahead with this, what would the accounting procedure be to record the deposit, and then the monthly payments?
