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Can i claim back 100% rental of a vehicle used for business?

I use a rented car for my driving school, i've been told many different things so i just want to know the truth! Some people say i can claim a maximum of 60% of the rental cost because i have to allow 40% for personal use. The rental company say i can claim 100% of the amount back, can someone give me some help please? I use the car as my own for private journeys too and i claim 60% fuel for that reason.

It's fairly complicated so I suggest you get your accountant to deal with it. A lot depends on whether the business is a limited company and whether you draw salary or dividends.

Strictly speaking you should apportion the use between business and personal use by keeping a record of the mileage for each. Then the business pays its share and you pay yours. However, if the business is a company and pays all the rent and other costs, you will be taxed on your private use as a benefit. This could be better or worse financially depending on a lot of variables.

Since you aren't using it solely for business, you can't claim it all, only the part you actually use for business.

And even then, it's an expense against income, not a credit, so your tax savings is only part of the allowable expense.

The regulations on company cars are frought with difficulties.
If you have an accountant see him. Otherwise have you actually tried speaking to the Inland Revenue. That always helps.

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