Car price as capital allowance

Peterdad

I still cannot understand cars as capital allowance for the life of me. I am self-employed a sole trader and I recently bought a car for myself. I use it for business about 20% of the time. Can I claim 20% of the actual cost of the car as capital allowance?

Also is it possible to take 20% of all those things insurance car tax etc?

Pennywise

No, it's 20% of the capital allowance. Capital allowance for most cars will be 8% (you'd need to check your CO2 and fuel type), so it's 20% of 8%.

Yes, you can claim 20% of the other costs such as fuel, repairs, road tax and insurance.

You may well be better to claim the 45p/25p per mile instead of claiming capital allowances and others costs. You need to crunch the numbers.

00ec25

purchase price of car £10,000
capital allowance rate (depending on what car) = 8% so 800

business use of car 20%

expense claimed in the business 800 x 20% = £160

next year:
10,000 - 160 = 9,840 x 8% = 787 x 20% = 157

year 3
9840 157 = …

you get the idea now?

[Deleted User]

00ec25 wrote: »

purchase price of car £10,000
capital allowance rate (depending on what car) = 8% so 800

business use of car 20%

expense claimed in the business 800 x 20% = £160

next year:
10,000 - 160 = 9,840 x 8% = 787 x 20% = 157

year 3
9840 157 = …

you get the idea now?

Perhaps you have a bad day?

]purchase price of car £10,000
capital allowance rate (depending on what car) = 8% so 800

business use of car 20%

expense claimed in the business 800 x 20% = £160

next year:
10,000 - 800 = 9,200 x 8% = 736 x 20% = 147

year 3
9200 -736 = …

00ec25

[Deleted User] wrote:

Perhaps you have a bad day?

don't spoon feed the (right) answer ....