Q&A

Answer a question


Do you want to follow this topic? You need to be signed in for this feature
Do you want to save this article to read later? You need to be signed in for this feature


If I was to lease a car (contract hire), would this be tax deductible as a sole trader (self employed person)?

2
Answers


Do you want to answer this question? You need to be signed in for this feature

Answers




You will be able to claim tax relief on a contract hire car yes. If you were to use your own car for business purposes, you would also be able to claim deprecation. And in both cases you would also be able to claim a certain amount of relief on fuel costs. You need to take a sensible approach, especially when it comes to fuel. Basically, the tax officer know that the vehicle will be used at some time or other for private use. If this is the case with you, I recommend you state 85% business and 15% personal use. In nearly all cases the tax office will accept this figure. Make sure you keep all receipts including the hire contract and cost and obviously all fuel receipts.



Thanks Jake, appreciated