Deep Singh

Can the whole cost of a car lease purchase be written off against tax if you are self employed?

Deep

kend

No.

You have to keep a mileage log, and so calculate a ratio of work to non-work use. Work use doesn't include the commute to/from your main place of work.
You can then split all of your motor expenses in this ratio - so lease costs, fuel, service, repairs etc. Similarly if you buy a car on finance rather than lease it then you can count the interest on the loan as an expense.

john banks

My understanding is also as above.

Additionally, one of my GP partners takes out a loan to buy his cars through the practice. He is borrowing against his capital balance in the practice, so can claim tax relief on the interest at his full marginal rate of 40% on the interest - the entire interest not just the proportion of it allocated to business use. This reduces a typical 6% loan to 3.6% which is below the present retail price index. Depends on the funds in your business. This can also be a way to pay less interest on your borrowings - eg mortgage on your house.

Deep Singh

Thanks Kend.

JB, I don't think your partner's situation applies to me unfortunately! How are you? Happy with the Evo?

john banks

Well thanks. Yes very happy with it except the exhaust noise which I'm working on. Still waiting for my nice handling, refined, subtle looking AWD 5+ cylinder tunable turbo monster to be released

Deep Singh

When you find it, put my name down for one aswell. As long as I don't have to MEW to afford it

Midlife......

iTrader: (2)

John

Sorry to be stupid but here but I thought all GP's were now Trust Employees on a salary (like what I am LOL) and all this had come to an end !!

or is Scotland different ?

Shaun

john banks

No, some are trust employees, some are employed by self employed GPs, but the majority of UK GPs are still self employed contractors mainly to the NHS.