Any accountants around?

[banana87]

I have a question that I need answered urgently and my accountant is away!

I want to lease a car for my business as I travel alot. However, as I am a sole trader and don't have enough credit my application for lease was declined. I can get a co-signatory but this would mean switching to a personal lease. If I have a personal lease and use the car 85% for business can I still claim that as a business expense?

You and your business are indistiguishable as far as HMRC are concerned so it should not change the position. You should check the details with your accountant though, particularly if you are registered for VAT. Note also that under these rules you can only claim 85% of the business element of the cost (so in your case 85% of 85%) unless the car is rated at less than 160g/km CO2.

Thanks mr anchovy. The car is 136 under the co emissions thing so safe there and I'm not vat registered.

Thanks!