Self employed and capital gains

a_confused_mum

Self employed and capital Allowance

not sure if in right place, so apologise in advance.

I am currently registering as a childminder {wales} and should get my certificate in next week or so. We have just put a deposit down for a car {mpv}. we have a saab and 3 of those seats are already taken up with my children, so for childminding purposes we needed a bigger car.
When I spoke to my NCMA contact today she mentioned I can claim through Capital Allowance. But I am at a loss how I would go about it.

ALso how about the mileage and/or tax..insurance etc so can I put it through correctly

Can anyone help

thanks in advance

thebaldwindowfitter

id the car is used solely for the business you can recliam the whole amount .if you buy the vehicle outrite with your own money then you can claim 25% of the value back in first year and i think its 15% there after which is called wring down allowance untill the vehicle on your books is worth nothing.if you use the vehicle for private mileage you will need to work out the percentage of use business/pleasure.my company car i claim 60% business for so pay tax on the 40%

a_confused_mum

so can i claim for the whole car AND mileage or one or the other?

thanks for replying

fengirl_2

You have two choices of how to treat your motor expenses:
1. The actual basis which means that you include in your accounts all the running costs of the vehicle - fuel, MOT, insurance, servicing, etc and in addition you claim capital allowances on your self assessment which is 25% of the annual value of the car. You would add back the private proportionof all motor expenses on your return.
2. The mileage rate which is 40p for the forst 10000 business miles and 25p pm thereafter. This is all you can claim under this method - capital allowances cannot also be claimed.

Pennywise

The capital allowance rates changed last April. It isn't 25% anymore, it is now just 20% and there is also a limit of £3,000 per year which won't matter unless it costs you more than £15,000. You take off the private proportion of use from the allowance, so if you used it for business 50% of the time, you can only claim 10% of its cost against your profits in year one.

thebaldwindowfitter

hence the argument for leasing a car for the business never done it but far simpler and whatever you spend each month you get back in next tax year

a_confused_mum

thanks all.
still a bit confusing though lol. will look more into it over the next few days

thanks

ceeforcat

a6windows wrote: »

hence the argument for leasing a car for the business never done it but far simpler and whatever you spend each month you get back in next tax year

The comparison calculations are complex. For example:

a) Take into account the restriction on lease costs for cars costing over £10000.

b) Leasing - car never owned and no allowance, therefore, for depreciation, especially on sale.

c) V.A.T.