Question 1

Do I need to be VAT registered?

Accepted Answer

No. Sole traders, partnerships and limited companies can all lease. VAT registration only affects whether you can reclaim VAT on the rental.

Question 2

How much VAT can I reclaim?

Accepted Answer

Typically 50% on a car that is also available for private use, and 100% on a commercial vehicle used solely for business. VAT on a separately itemised maintenance element is usually reclaimable in full.

Question 3

Are rentals tax deductible?

Accepted Answer

Rentals are normally an allowable business expense against profit, though part of the rental on higher-emitting cars is disallowed. Your accountant will know the current CO2 threshold.

Question 4

What does a new company need?

Accepted Answer

Funders usually want two to three years of filed accounts. Newer businesses can often still be approved with a director guarantee, or by leasing in the director name instead. Ask before you apply.

Question 5

Can I lease several vehicles at once?

Accepted Answer

Yes, and it is usually simpler than doing them one at a time. Send the list and we will handle it as a single underwriting exercise rather than separate applications.

Fixed monthly cost, off the balance sheet risk

What underwriting looks at

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