Q. I have recently registered with Paystreams Umbrella services. I now need to change my car, is leasing an option?
A. The answer to this question was provided by PayStream.
You may indeed claim for tax relief when leasing a vehicle, however please be aware that different rules will apply depending on the length of the lease.
In the case where a vehicle is leased for a short amount of time (less than three months), you may claim for tax relief on the cost of the vehicle hire and the cost of the fuel that you fill the vehicle with as a monetary value. Please note that some apportionment of the cost to the days worked may be necessary in this case to reflect the business use of the vehicle against personal use.
Conversely, in the case where when the lease is long term (longer than three months), you may claim for mileage that you cover at the 45p/25p scale rate for car mileage. In this case you may not claim for the cost of the lease itself.
You will need to provide us with the lease agreement in both instances so that we can verify the length of the car hire and other important details.
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