Business Van - lease + P&L

C

Catipillar

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Business Van - lease + P&L

If I were to lease a van - then the bank owns the asset and i'm leasing the services of the vehicle. If this were the case would the monthly repayments be an expense?

As a sole trader could I use this monthly lease as an expense against my income?
 
In general I advise clients to go down the HP route as opposed to teh lease route. Part of the reason is when you come to sell/trade in the vehicle. The value of same at that date is added back to your profits in the year you sell. While the trade in value is spread over the full period of the next lease. This creates an extra tax bill every time you come to change the vehicle say every 3 years.With HP you take wear and tear each year and you don't as a rule have such an addback.
 
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