Is car leasing tax deductible?

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If you are going to lease a new vehicle through your business, then you might be eligible to claim back tax as a business deduction, also known as a business expense. The lease payments might be able to be deducted from your taxes through the business. To do so, you will need to monitor all the vehicle’s usage, whether that be personal or business reasons. In some cases, you will be able to claim deductible tax on the miles which you use for business purposes.

VAT tax could also be claimed back on business leasing. Businesses which are VAT registered are usually eligible to claim back the VAT from the leasing agreement and vehicle value. To be able to claim back the VAT, businesses must prove that the vehicle is used 100% for business purposes.

To find out more information, please don’t hesitate to contact one of our leasing specialists for advice.

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