Hi, I have a query about Car Leasing VAT & Private use.
Part 1 is an accounting query.
I have a self-employed client who is going to lease a car which will have some personal use & the car has high emissions. So to make the maths a bit easier, lets say that the monthly gross lease costs are £600. I know that we can only claim 50% of the VAT so that would mean Gross £600 VAT £50 and Net £550. Because the car has high emissions 15% needs to be deducted from the Net and there is 5% personal use so we have a 20% deduction off of the Net, and can now only claim 80% for expenses.
My question is can we claim 80% of the £550 (£440) or because of the original 50% VAT bit, can we only claim 80% of half of the net i.e. 80% of £275 (£220) ?
And Part 2.
How on earth do I record this into QuickFile to ensure everything matches up to the original amount of £600 coming out of the bank account.
Thanks in advance of any advise you lovely people can offer.