Operating Lease - Car

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JamesB
JamesB Registered Posts: 51 Epic contributor 🐘
in General accounting discussion
Hello all,

if a director of a Ltd co hires a car under an operating lease in her name (not the company name) and pays for it personally, can she claim say 50% of the repayments and vat as a business expense as the car will be used 50% for business?

If the answer to the above is yes are there any BIK implications seeing as it is an operating lease, thus not a company car.

Thanks in advance,
J

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  • stevo5678
    stevo5678 Registered Posts: 325
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    I think VAT is strictly based on who the invoice is made out to so I would say no (which eliminates theBIK question).

    Can't it be changed to the company?


    JamesB wrote: »
    Hello all,

    if a director of a Ltd co hires a car under an operating lease in her name (not the company name) and pays for it personally, can she claim say 50% of the repayments and vat as a business expense as the car will be used 50% for business?

    If the answer to the above is yes are there any BIK implications seeing as it is an operating lease, thus not a company car.

    Thanks in advance,
    J

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