A director is looking to having the use of a company leased saloon car and would be grateful if anyone would confirm the Vat treatment of the monthly leasing payments. Whilst the car will be used for both business and private motoring I take it that the full amount of Vat cannot be reclaimed and in addition there is the prospect of both the car and fuel benefit to consider even on a leased vehicle?
Thanks
Peter Reader
Replies (1)
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leased vehicle
VAT on the vehicle - the company can reclaim 50% of the VAT on the leasing costs and 100% of the VAT on any maintenance.
VAT on fuel - either claim nothing, or claim all but pay over the VAT scale charge (from May 2007 this will be based on the CO 2 emissions)
Benefit - yes, it makes no difference at all that the car is leased. It's still provided by the company for private motoring.