Sole Trader Business / Personal Vehicle, Sub Personal Allowance, Non-VAT - Any Incentives?

Hovercraft_3

Hi all

Well, my 20 year old car is about to meet its end, it’s served me well!

I’m a self employed sole trader, not VAT registered, and rarely make a profit over the personal allowance threshold.

I’m looking at a replacement for my car that will be useful for me in business and personally. I would say the split in usage is roughly 60 personal / 40 business. I had previously been claiming simple mileage rates for my car for the business use. I have been looking at double cab pickups with a payload of over a tonne, like the Mitsubishi L200 or Toyota Hilux, which I understand are classed as commercial vehicles for tax purposes. I’ve been looking at vehicles prices around the £10k - £15k mark.

I wondered what if any incentives / reliefs may be available for me? The different scenarios are confusing, and if any in fact would apply to me given my sub-P/A income & non-VAT registration.

Can anyone guide me?

Thanks!

bris

An accountant

Grumpy_chap

It seems as though the OP already has a good Accountant, if profits never meet personal allowance but looking for a new vehicle at £10 - 15k.  That's equivalent to a whole year's salary.

bris

Grumpy_chap said:

It seems as though the OP already has a good Accountant, if profits never meet personal allowance but looking for a new vehicle at £10 - 15k.  That's equivalent to a whole year's salary.

Or just a really bad business.

Grumpy_chap

Assume if it was a really bad business, the OP would not be entertaining a vehicle costing a whole year's salary.