Leasing vehicle

Leasing vehicle

Didn't find your answer?

I correct in thinking that a sole trader can lease a vehicle and claim 50% of the vat back i.e. it is not restricted to companies?

Also what markup does the car dealer / leasor take. i.e. does the lessor add interest onto the basic price?

Sorry for asking stupid questions but just trying to way up the pros and cons of buying outright and not being able to claim vat vs leasing?
John

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By stephenkendrew
28th Apr 2007 08:29

VAT
You can claim 100% of the VAT if the car is used for business 100% of the time - which for a sole trader is very difficult.

Otherwise the sole trader can claim 50% of the VAT on the lease cost (and, if there is a repair element, 100% of the VAT on that part) - this is not restricted to companies.

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