any business accountants on here ????

justin30_2 · 8 February 2010 at 8:41PM

i start work next week as a private hire taxi driver, the owner ill be working for has offered me an extra £200 a week if i do executive work.
If a purchase the neccessary vehicle to do the work ( must be a8, s class, 7 series etc ) can i claim anything back towards the cost from my tax as i would only be buying it for the work as otherwise i would have just keep my current car..?????

Rolo_Tomasi · 8 February 2010 at 11:39PM

You cannot claim anything against the cost of the car but when you complete your Tax Return you will reduce your taxable income by Capital Allowances. These are based on the cost of the car with the deduction being equal to 20% of the cost of the vehicle less a reduction for any private use.

Normally the allowance for cars is restricted to £3,000pa however provided the vehicle is being used as a "qualifying hire car" then this restriction does not apply.

fengirl_2 · 9 February 2010 at 9:21AM

Rolo's reply is correct if you are self employed. However, if you are an employee of the taxi firm, in which case, you canly claim the 40p/25p mileage allowance against tax.

pelirocco · 9 February 2010 at 9:26AM

I would be more interested in the extra costs you will incurr in order to earn an extra £200 first

any business accountants on here ????

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