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Posted Fri, 09 Feb 2024 00:22:31 GMT by
I have financed a vehicle via my limited company, aside from expensing the monthly repayments, am I allowed to voluntarily pay in addition to, amounts, to reduce the total debt and will that reduce the total corporation tax due to be paid?
Posted Fri, 16 Feb 2024 11:30:41 GMT by HMRC Admin 20
Hi Jay Khan,
This is a complicated area, and I would ask you to consider seeking professional advice from an accountant/tax advisor since HMRC would not be able to provide accountancy/tax advice to assist you with your query. 
I would, however, refer you to HMRC’s Business Leasing Manual at the weblinks below for further information. 
BLM32050 - Taxation of leases that are not long funding leases: finance lessees: general issues: depreciation method used
BLM32220 - Taxation of leases that are not long funding leases: finance lessees: taxation generally: use of generally accepted accounting practice
BLM00330 - Introduction: Lease taxation: Hire purchase contracts
CA23300 - Plant and Machinery Allowances (PMA): hire purchase: contents
Thank you.

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