Hi, Can you tell me how to account for the 50% Vat Restrictions on a Lease Car Please?.

Hi Carol,

It sounds like you are talking about leasing a 'qualified card' as
described in section 4.2 of this page:
https://www.gov.uk/guidance/vat-on-motoring-expenses-notice-70064#input-tax-on-leased-cars

I believe you should handle that by splitting each lease payment into two
transactions of equal size:

1. A normal expense allocated to Motor Costs with 20% VAT

2. A non-business payment with 0% VAT as described here:
   https://www.solaraccounts.co.uk/help/how-to-record-non-business-payments

However, I'm not an expert on this topic -please check with your accountant.

Cheers Mark.

I’ll have a chat with the accountant too.

Best regards

Carol