Deep Singh

Can somebody remind me what the deal is with a car purchase and whether you can write some of this off if you are selfemployed?

Thanks

dpb

If its introduced as a capital asset you mean

Deep Singh

I think so

john banks

My accountant tells me I can write down the value of my privately owned car up to a maximum of £3k pa. I can claim a proportion of the expenses of running the car based on the proportion of my mileage that is for business - in my case home visiting which is 27% of my mileage (the rest being mainly to/from work which is private mileage). I can also take a loan against my capital balance and have tax relief on the interest. Some use this for financing their cars since the interest rate after tax would be less considerably less than inflation. For GPs it is generally best to own the car privately rather than have it as a business asset, not sure what is best for you...

Best to ask your accountant who will understand your personal circumstances.

MikeCardiff

iTrader: (2)

There loads of different ways you can do it depending on your job, how much the car is used for work / private use, how you want to write off the capital deprecation against tax etc, how you are financing it etc...

Would agree with above, ask your accountant if you arent sure as it does vary from case to case.

Deep Singh

Thanks. I was going to ask my accountant tommorrow anyway but just got curious as I was collecting my data for 31/1/2009 deadline.

Guess how much I spent on fuel in 07/08 tax year? £2662! I only live 5 miles from my workplace!

sti-04!!

You really need to trade that 1.1 Fiesta popular plus in Deep & get a mans car like an M5.

pwhittle

if, like me, you drive old heaps it's better to just claim the mileage allowance (which sadly thay haven't increased for year)
you can only change from one system to the other on starting a busniess or changing car though.

stevebt

iTrader: (8)

My accountant has told me I can't claim for my car anymore as the parts list was just getting silly