Leasing question - initial deposit apportioned?

[foreverfalling]

Hi there.

I'll be putting a portion of my car through my business - a partnership.

As it's over 130g co2 - I know I can only claim 85% of total payments and also that has to be apportioned to business mileage/ personal. (50/50 for me)

My question is - can the initial deposit payment be divided by the full lease period and apportioned to each month?

I'm paying 2400 up front then £205 per month.

As I'm getting the car in march( tax year 2014-2015 ) and have only about 50 business miles scheduled in march (seasonable summer work we do mainly) it would be rubbish if I can only apportion the first large payment to march rather than average out the total cost of the contract over 2 years and then divide it by 24.

Because we have little work in march and are paying 2400 then we would be only able to claim about 5% of the 85% of the the 2400 which seems silly.

I want to average the 7115 over the 24 months. Is this possible? The main problem is because I'm paying the big deposit in the last month of the tax year and won't be using it for business until the next year.


I hope my query makes sense. Might have to call hmrc.

[Countdown]

I'm reasonably sure you can.

We do the same thing in reverse when we take out leases on new offices. Quite often we have an initial rent free period, however for accounting purposes we pro-rata the rent payable over the lifetime of the lease. Similarly there is usually a dilapidation s charge at the end of the lease. We prorata this over the life of the lease.

[foreverfalling]

So do you send an amendment for previous years when you know what the dilapidation charge is?

(I will probably have an excess mileage charge on the lease but tempted just to put that into the year th lease ends)

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foreverfalling said:

So do you send an amendment for previous years when you know what the dilapidation charge is?

(I will probably have an excess mileage charge on the lease but tempted just to put that into the year th lease ends)

No. There is just a balancing charge in the final year of the lease (gain or loss depending on whether we have over- or under-provided)

[foreverfalling]

Thanks!

It's been recommended I just use my average mileage split and apply it to the 85% of initial payment and claim it in 2014-2015 tax year and have one big expenses claim for that year.

Next years claim will be a lot less I guess.