PCP? Personal Hire HP? which way can i save tax?

Ukraj

HIya

Id like to buy a new car

Its a funny situation ion that i have a regular job but regulalrly sell on ebay and hence have declared msyelf as self employed to declare all the profits i get. Ebay is a part time hobby which pays well. I have put my expense such as phone stationery against this profiy

Whats is the best way to use a car as i have to make freuent deliveries, pick up of parcels.
So far just used my own car and recorded the mileage and petrol receipts.

I was thinking of maybe using a car a sa n expense- I usually make £700---800selling on ebay+ free lance work as self employed

Even if i spend 500 on car- my assumption is it would reduce the tax i pay so making the car rental/payment actually cheaper

I was thinking of contact hire as the monthly payment can be offset against - but im not vat registered!- I can volunatrily do this but seems a bit of hassle

The car id like is volvo xc90- 34-35k new- over 3 years will loose 30k and be worth 15k anywway

On contract hire it is 1500 deposit + 450+Vat

PCP 550 including vat but with a 2000 deposit ( inc Vat)

Personal hire 535

Hire purchase around 550- but over 5 years

Which would be the most efficent way to use this as a business expense and offset against profits- ie minimise and save Tax.

ideally i should get vat registered and do contract hire but i dont sell enough to justify it.

If i did pcp - would have to just clain 40 p a mile?


Many thanks

Raj