Finance Lease currently treated as depreciation claim x 25% of 47 rental payments apportioned to 7/12ths because the company had use of the vehicle from the end of March to the end of October (year end). Therefore £10,281.00
Details:- Finance Lease signed end March.
Per Lease agreement the primary hiring period = 43 months
Minimum lease payments (per a recent letter enclosing interest details) = 42
Cost = £54,000 net of VAT
Interest = £17998.55
According to Agent the Lease period is 48 months and the 6 up front lease payments do not reduce this period although they are itemised by the Lessor as 1 initial rental commencing 7/4/11.
Monthly rental =1499.97
Interest started around £750 for 1st initial rental (although this had been treated as 6 primary rentals) reducing over the 43 rentals to 0 and totalling £179998.55.
As this has taken the sole trader into the 40% tax bracket I would like to be able, to argue, with reference to FRSSE that the accounts be changed.