As finance departments may be aware, for accounting periods starting from 1 January 2026 onwards, even smaller businesses may need to change how they present vehicle leasing costs in their annual accounts.
Larger businesses, who prepare their financial statements based on the International Financial Reporting Standards, will already be familiar with IFRS 16, which provides guidance on accounting for leases, so while there is no change there, it is important to be aware of the accounting changes, as they may impact your customers.
BVRLA is considering creating a short guidance document that will help to set out what is changing from 1 January 2026 and who it will impact. If this is something that you would find useful, email [email protected].
If you are unsure whether your business is impacted, you may want to check this with your accountant, especially if you have a meeting planned either before or soon after the upcoming Budget on 26 November 2025.
