My Car and Business Usage

PhilCCFC

I was just searching around the CAB site and they mention the following

Tax reliefs that can be claimed in connection with employment include interest on loans that you use to buy equipment (such as a car or machinery) necessary to do your job. This is allowed for the tax year the equipment is purchased and the following three tax years

I came out of the company car scheme in October and have bought a car financed via a personal loan, do I qualify for this tax relief and if so how do I claim it back? Via my SA or via another method?

Thanks

consumerpower

I have a very limited knowledge of PAYE, because I have forgotten it all. I think the answer is no, I think it is for example when you get charged interest on a mortgage as a landlord.

My advice not very helpful is to phone the HMRC helpline and ask them.

jennifernil

If you are using your car for your work then you can clain tax relief on up to 40p per mile. Does your employer give you any expenses? i.e so much per mile? If you get less than 40p per mile for the first 10000 miles you can claim tax relief on the difference. Over 10000 it reduces to 25p per mile.

If you are "employed" you can no longer get relief on capital costs, only maybe if you are self employed.

If your employer gives you "cash in lieu" of company car then this will (correctly) be taxed as salary. The tax relief is claimed via the 40ppm

There is a place on your SA to claim this. Read the notes, they have a section about this.

PhilCCFC

jennifernil wrote: »

If you are using your car for your work then you can clain tax relief on up to 40p per mile. Does your employer give you any expenses? i.e so much per mile? If you get less than 40p per mile for the first 10000 miles you can claim tax relief on the difference. Over 10000 it reduces to 25p per mile.

If you are "employed" you can no longer get relief on capital costs, only maybe if you are self employed.

If your employer gives you "cash in lieu" of company car then this will (correctly) be taxed as salary. The tax relief is claimed via the 40ppm

There is a place on your SA to claim this. Read the notes, they have a section about this.

I do claim this one already, many thanks for the clarification though!

Bean_Counter

The attached link to HMRC website shows (amongst other things) that capital allowances are no longer claimable for private cars on business use:

http://www.hmrc.gov.uk/manuals/senew/SE31335.htm