Lease car and sole trader

[adr...@awallis.demon.co.uk]

Hi,

Can someone please advise on the following:

I am currently employed and also have my own software business as a
sole trader. Under my full time employed job I have a company car which
I'm taxed on etc.

Is it possible instead for me to lease a car as a sole trader part and
offset the cost (approx £275 / month) completely against the profits
of that business. May tax allowance would still be affected by the
amounts on the P11D I presume, but the reduced profits should outway
this cost.

As far as I understand, the business mileage is not relevant for tax
purposes at all now, so doing virtually no business mileage as the sole
trader would be irrelevant?

Many thanks
Adrian

[adr...@awallis.demon.co.uk]

Just filling in a P11D for a rough idea, I looks like I would be worse
off doing that anyway:

Based on 10,000 profit from the business...

The lease car cost would be approx 3,180 / year REDUCING the profit to
6,820.
However the P11D benefit would (on my example car I'm considering) be
3,829.

Meaning that in effect I'd be paying tax on 10,649 instead of 10,000...

You just can't win in this country :(