New Car

ellywellywoo

I run a mobile chiropody business and have just bought a new car. This is also used for private use as well but during the week I clock up approximately 50 business miles a day.

Can the cost (or part of it) of this new car be put down as tax relief??
I use the 45p a mile ruling when working out my expenditure

Many thanks for any advice

ILW

The 45p is supposed to cover all costs. So nothing extra to claim. Different if it is a company though.

ellywellywoo

ah what a shame. Glad I asked though!! Thanks

HouseACA

Just wanted to suggest you may be able to claim capital allowances on the new car on the portion used for business.

Perhaps something to run by your accountant, may be able to save you a few quid.

Tinker009

If you took out a loan to purchase the car, the interest on this can be claimed in addition to the 45p per mile.

The only time you can change the basis of claiming expenditure for motor expenses is when you change your car so House is right, you should check with your accountant to see if claiming the ‘actual’ costs would be better. You would work out what % business use you use the car for and then claim the actual costs for fuel, repairs, insurance etc and also claim capital allowances. Using this method you would have to keep a note of all your costs so probably only worth doing if there was a big enough tax saving.

zygurat789

HouseACA wrote: »

Just wanted to suggest you may be able to claim capital allowances on the new car on the portion used for business.

Perhaps something to run by your accountant, may be able to save you a few quid.

But if the car's CO2 emissions are more than 130g/km then the rate is only 8%
for 2013/14