I have a client who leases a car for business and personal use. The lease is in his name but he wants to put it through the business and reclaim VAT. Am I right in thinking he can't do this, and especially can't reclaim the VAT, as the lease is in his name and not in the company name? Is there a way he can reclaim any VAT on this?
Ignoring the VAT element, he put any leasing costs through the business for business use?
Thanks
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Arguably he is being reimbursed for his expenditure. Is it a sole trader or company?
If you do decide to ‘put it through the company,’ there is a 50% input tax block.
Les , i thought HMRC had pronounced on that with a slightly different take . no surprise there.
HMRC do sometimes deny input tax, but it does depend on specific facts, for example if the supplier will only deal with the employee, not with the employer.
Also, how risk-averse is the client?