Help With DRIVING INSTRUCTOR tax????

stuart2588

Hi

My head is totally baffled with tax rules for driving instructors lol.

I am trying to work out roughly my half yearly profits and have some question that I need help with.

1. I bought a car for 5000 in August this year on a credit card so that I could pay it off quickly. How does the tax allowance work on this?

2. How does tax allowance work on my petrol expenses?

Thanks for taking the time to help me out. If I can get help with this I will be able to work out my average tax bill.

Stuart

fengirl_2

With your petrol and other running costs, you have two choices. You can either include in your accounts all the running costs of the car, ie petrol, servicing, insurance, tax, repairs, interest on car loan and then add back the private proportion of these costs. You would then claim capital allowances on the £5000 cost of the car, again reduced by private proportion.
OR, you can just include 40p per mile for the first 10,000 business miles and 25p thereafter. This would be all you could include - no capital allowances or any other costs.
The second method is easier, but check that it is financially beneficial to you, especially if you do a lot of business miles and your motoring costs are high.

oldandbald_2

Hello there,

I normally get a tax company to sort out my tax return but this year I'm on my own. I want to get it completed for the 31st January.

What I want to know please are the taxable allowances (proportions?) for :

Fuel
Car maintenance
Phone (landline)
Mobile
Internet
Mortgage/Gas/Electricity/Council tax ie. running an 'office' from home
NI and pension
Advertising

Is it a case working out what is private use and business use for each item.

Eg :

I rarely use the car outside work. Probably 90% So can I claim 90% of my car bills?

Well I don't really have an 'office', just athe kitchen table.

I rarely use the internet for work; but who would know and how much could I get away with?

Please could someone help and explain what I can do.

Thanks