Self employed sole trader mileage allowance

Can they also claim lease payments?

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A self employed sole trader client who claims mileage allowance has said that he wants to claim operating car lease payments on the profit and loss account too.

I assumed the mileage allowance covered fuel, repairs, tax, insurance and that you could claim additional expenses for parking, tolls, interest on a finance lease but not actual lease payments on the profit and loss.

I can't find an HMRC article to link to which would confirm this, can anyone help?

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By MJShone
16th Jun 2017 16:09

Short answer is "no". The mileage allowance covers everything. See s94D -G in Income Tax (Trading and Other Income) Act 2005. If you want something HMRC-produced - BIM 75005.

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