Question- During the quarter ended 31 march 2019 jimi a sole trader leased a motor car cost at a cost of £960(Inc of VAT) The motor car used is used by jimi and 70% of the mileage is for private journeys
so here input VAT is 960*20/120= £160 but the answer is £80 how sir...?
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VAT
It is, as most of tax is, a rule - on a leased car charge where there is private mileage only 50% of the input tax is recoverable
Thank you sir
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