Claiming vehicle as taxable expense

CIS.

Hi looking to see if I can save some tax by getting a decent car to be used for business and offset the car price. My earnings will likely be well into the high tax bracket maybe around the £60k mark. What I'm thinking is if I buy a car around £35k then a percentage (25%)? Could be claimed off this purchase price to reduce my tax liabilities. I'm driving at the moment a VW golf which is over 10 years old so has been a pain with repairs and would be good to get something fairly new and reliable. Any help would be great!

System

Are you PAYE or self employed/Ltd Co?

PAYE no hope

CIS.

CIS.
Just done a search it seems 18% for a car but only if under 130 carbon emissions then 8% over the emissions?
Not sure where I got the 25% from? Are vans calculated at 25% a year?

booksurr

I take it that CIS. is a different poster to the other poster called CIS!

Vans are classed as plant and machinery so are allowed 100% CA in the year of purchase BUT when you come to sell them at the end you will have to pay tax on the balancing charge so they are not as clear cut as you may think

yes you are correct that the rates for cars are:
100% if 75g/km or lower
18% over 75g/km up to 130g/km
8% over 130g/km

if you are a sole trader and have a turnover <£82,000 it may be better to use the cash basis
https://www.gov.uk/simpler-income-tax-cash-basis/overview

if you are a limited company you must use the capital allowances basis

Pennywise

Also remember to adjust for private use. So if you use it 50/50 between personal and business use, your claim of 8/18% is reduced by 50%.

agrinnall

booksurr wrote: »

I take it that CIS. is a different poster to the other poster called CIS!

That confused me at first too. (And I assume that CIS! is the same poster as CIS no punctuation ).

antrobus

agrinnall wrote: »

That confused me at first too. (And I assume that CIS! is the same poster as CIS no punctuation ).

I presume that when CIS says he is CIS he means he is subject to the Construction Industry Scheme i.e. a subcontractor in the building industry

CIS. wrote: »

.... Any help would be great!

You buy an asset for your business, you claim a capital allowance.


https://www.gov.uk/topic/business-tax/capital-allowances


Generally speaking, builders normally buy vans rather than cars, or at least some kind of vehicle that looks like a car, but qualifies as a van, such as a double cab pick up.

agrinnall

antrobus wrote: »

I presume that when CIS says he is CIS he means he is subject to the Construction Industry Scheme i.e. a subcontractor in the building industry

Yes, I think both booksurr and myself understand that.

booksurr

antrobus wrote: »

I presume that when CIS says he is CIS he means he is subject to the Construction Industry Scheme i.e. a subcontractor in the building industry

indeed however CIS (original) works as an employee in council tax recovery and is the resident expert on all things CT (supplemented by Lincroft where matters of valuation arise)

whereas CISdot does not work in that field and is, as you say, probably involved in construction

antrobus wrote: »

You buy an asset for your business, you claim a capital allowance.

https://www.gov.uk/topic/business-tax/capital-allowances

Generally speaking, builders normally buy vans rather than cars, or at least some kind of vehicle that looks like a car, but qualifies as a van, such as a double cab pick up.

yes, but CIS. is specifically asking about cars and they have special rules as he has already identified.

CIS.

Hi sorry for confusion didn't realise there was another person called CIS
I'm an electrician so can get away with a large boot for my tools alone. The person who I work for may wish me to use the vehicle more than I'd like if I had a van as the kit we use takes up quite a bit of space for the job we do. So sort of a tactical move getting a vehicle that would take just my tools.

CIS.

Wow just been reading from one of those links.
It looks as though that you can actually claim for expenses if you are PAYE.
I am at the moment PAYE but was thinking that it may be beneficial to on CIS so I can claim back some of the money i use to run my vehicle. Where i use my car to go to sites and I also stay away in hotels when these sites are dotted around the country. Sometimes I use my car sometimes not to get to some sites as we work in teams.
I thought the money where I am on the cards was just thrown away on these expenses, My boss doesn't give me a mileage allowance and to be honest I would feel cheeky asking too. So can I add up my mileage and multiply by the 45p / 25p and claim that back?
When I was reading I saw that food and drink is an allowable expense when staying away even whilst PAYE. How much per day is acceptable to claim as I could easy spend a tenner on lunch alone sometimes. B and B is paid by boss but sometimes the breakfast isn't available or doesn't fit with timings for getting to work then also an evening meal. Would this also be calculated as a percentage due to having to buy food at home anyway? I'd hope not as family at home would still have to be buying meals or going out themselves due to me being away so I guess is going to not be saving that much while I'm away??
Thanks for all the replies greatly appreciated.