In most cases, if the vehicle is purchased, businesses can only reclaim VAT on car finance payments if the vehicle is used solely for business purposes. (This does not include your daily commute). If the car is used as a mix of business and personal use, you cannot reclaim the VAT. In most cases, if the vehicle is leased, businesses may reclaim 50% of the VAT on car finance payments, as well as on included charges for maintenance and excess mileage. See HMRC's guide on VAT rules for business car financing for details.