Purchasing a Car as Self-Employed

Halobump

Hello all,

I'm considering buying a car over the next of months and was wondering if people had advice on claiming it back as Tax. I read through the GOV website and calculate that I will be using the car for five days a week on work-related travel. I'm considering an i10 as I believe low-emission cars are important to claiming.

Is there a particular method of purchasing that would be most beneficial, and can maintenance of the car itself be claimed back?

Thanks for your help in advance!

zygurat789

Halobump wrote: »

Hello all,

I'm considering buying a car over the next of months and was wondering if people had advice on claiming it back as Tax. I read through the GOV website and calculate that I will be using the car for five days a week on work-related travel. I'm considering an i10 as I believe low-emission cars are important to claiming.

Is there a particular method of purchasing that would be most beneficial, and can maintenance of the car itself be claimed back?

Thanks for your help in advance!

You can't claim it back as tax, what you can do is reduce your income by the expenses, thus getting tax relief for the expenditure.
the use the car is put to must be incurred wholly and exclusively in earning your sales and it looks like there will be some private use of the car.
You should keep a record of all your expenditure, the total for the car will be pro rata business to private mileage so you will also need to keep a record of your journeys.
The expenditure may be of two types, capital for the car purchase and revenue for the running expenses. The business % of revenue expenses are an expense in your profit and loss account. The capital cost will be subject to capital allowances, HMRC's version of depreciation.