self assessment - claiming for car purchase

johnboy123

I have been working as a sole trader this year and due to file my first returns. I generally work from home but sometimes travel to meetings or on-site work by car. I happened to have bought a new car this year, can I claim against a percentage of the purchase cost as an expense? (I use it for personal stuff too) I am assuming you can claim mileage too anyway?

Thanks

j

dejongj

I was in the understanding that the 40p for first 10k and 25p there after incorporated depreciation/insurance/maintenance elements already...And that is an expense item...

nealnomoney

well your wrong

dejongj

nealnomoney wrote: »

well your wrong

Meaning, you can attribute a portion of the purchase cost as expenses? Please elaborate; if so how much? what effect does it have on benefit in kind, etc....

nealnomoney

Mileage allowance does not incorporate depreciation, insurance and maintenance items. Claiming for your car is known as capital allowances.

dejongj

But isn't it either, or? So if you claim it as a capital allowance you then can't also claim the 40p/25p rate, but get taxed as benefit in kind because it is a company car now? Thus the mileage allowance becomes a petrol allowance which doesn't incorporate the elements stated before...

Or am I wrong with that as well? It really help when you eloborate instead of giving this short yes/no answers...

nealnomoney

since when has it been a company car????

Bean_Counter

I'm with dejongj on this.

If you claim capital allowances then the company owns the car, and since johnboy123 is doing private mileage, then car and fuel allowances come into play.

However, I don't think this is where johnboy123 is going with his original post.

harryhound

It takes two shareholders to make a company, It also requires a company secretary to act as fall guy or am I missing the point too.

Please can someone who clearly understands ALL the wrinkles answer this question.

Personally it sounds to me as though this is a privately owned car (I wonder what the insurance policy says ?) occassionally used for business mileage and the 40p route is the best and most economic way of claiming.

(It is like a buy to let landlord being allowed to claim 10 percent of the rent for wear and tear - a whole lot less trouble than keeping receipts etc unless you are a property company).

But I drive a diesel

Harry.

nealnomoney

He is a sole trader, there is no mention of a company!!

Bean_Counter

harryhound wrote: »

It takes two shareholders to make a company, It also requires a company secretary to act as fall guy or am I missing the point too.

Please can someone who clearly understands ALL the wrinkles answer this question.


Harry.

Sole trader / limited doesn't matter for capital allowances etc.

However, we mostly seem to agree that 40p per mile etc is the easiest way forward.