Hi,
I would be very grateful if someone could answer my question.
At the moment I lease a motor vehicle, claim back 50% of the VAT and put through 70% of the monthly lease cost as an expense, because the vehicle is part used for personal use.
The lease will soon come to an end and I am now looking to PCP (Personal Contract Purchase) my next vehicle. With this option I cannot claim back any VAT as I wont be charged any.
My question is: Will I be able to put the monthly payments through as an expense or will I have to put it down as a capital expense, even though I wont technically own the vehicle until I have fully paid for it at the end of the 3 years. At the end of the 3 years I have the option to pay the balloon payment or hand the vehicle back.
Any advice would be great.
Thanks
I would be very grateful if someone could answer my question.
At the moment I lease a motor vehicle, claim back 50% of the VAT and put through 70% of the monthly lease cost as an expense, because the vehicle is part used for personal use.
The lease will soon come to an end and I am now looking to PCP (Personal Contract Purchase) my next vehicle. With this option I cannot claim back any VAT as I wont be charged any.
My question is: Will I be able to put the monthly payments through as an expense or will I have to put it down as a capital expense, even though I wont technically own the vehicle until I have fully paid for it at the end of the 3 years. At the end of the 3 years I have the option to pay the balloon payment or hand the vehicle back.
Any advice would be great.
Thanks