Leased company car and accounting entry

Would this work?

Didn't find your answer?

Just preparing accounts to 31.03 sole director no payroll scheme.

During the year the client contracted for a lease car claimed full vat on payments and did not consult with usz

so a p11d will be due and adjustment to the VAT. The client is saying that they have the car in lieu of mileage owed to them - is that allowable Ie if lease payments are say £6000 net and mileage claims £6000 would it be possible to cr the lease costs dr travel? And then reduce down the bik on the p11d for the value of the mileage? Or does it have to be funds paid into the company physically?

Also if any contribution is equal to the lease costs does that still mean 50% vat would be claimable?

many thanks 

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By SXGuy
29th Nov 2018 09:41

Maybe im missing something.

But if the lease payments are made using the dla because the milage allowance covers the payments then why is it being treated as a company lease and why had vat been claimed? Why the p11d?

Surely the issue here is he should never have claimed the vat in the first place nor set up the lease under the company name?

What benefit does he get to having the car in the company name then pay extra tax under bik when the company could easily afford to pay him the amount needed to cover the lease payments.

Seems a strange way of doing it.

Also if he's claiming milage allowance where do you purpose the travel expenses are coming from? Can't have both.

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