Salon Tax
Well-Known Member
I'm not sure about the ins and outs of the benefits of the car leasing (but that seems to be pretty covered here already) but I run a firm specialising in tax services for the beauty industry so I can help you on the tax front!
The monthly lease costs would be a deductible expense against your profits. However, this is only for the business part of the use of the car so you would have to work out how much you use the car for business & how much you use it for personal use. Also, HMRC are very anti car & so if you get a 'dirty' car ie/ one with emissions above 130 g/km, you will only be allowed to deduct 85% of the lease costs as an expense.
You can then claim any further costs of the maintenance of the car (again just the business proportion) as well as the fuel. There are two methods for calculating the fuel expense (let me know if you want more info on this)
The relief given if you buy the car is very different and rather more complex.
But please get in touch if you have anymore questions as I'd be happy to help
x
The monthly lease costs would be a deductible expense against your profits. However, this is only for the business part of the use of the car so you would have to work out how much you use the car for business & how much you use it for personal use. Also, HMRC are very anti car & so if you get a 'dirty' car ie/ one with emissions above 130 g/km, you will only be allowed to deduct 85% of the lease costs as an expense.
You can then claim any further costs of the maintenance of the car (again just the business proportion) as well as the fuel. There are two methods for calculating the fuel expense (let me know if you want more info on this)
The relief given if you buy the car is very different and rather more complex.
But please get in touch if you have anymore questions as I'd be happy to help
x
