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Car finance self assesment

alboy12
Posts: 37 Forumite

in Cutting tax
I am recently purchased a vehicle to use for work on PCP finance, I pay £95 per month. Can i put a proportion of this figure through my self assesment. I am a sole trader.
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alboy12 said:I am recently purchased a vehicle to use for work on PCP finance, I pay £95 per month. Can i put a proportion of this figure through my self assesment. I am a sole trader.0
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There is no company here, as OP is a sole trader. The question is actually a very difficult one. The precise structure of the PCP needs to be examined, and a judgment made on whether this is a finance lease type of arrangement. If it is, capital allowances can be claimed on the full cost of the car, depending on the business use proportion, and the rate of those allowances depends on the nature of the car (100% for fully electric vehicles, for example). If it is more like an operating lease, then a percentage of the lease costs can be claimed, depending on the emissions and the business proportion. The business proportion of insurances, licences, repairs and fuel can be claimed whichever type of lease it is.
The alternative is to claim the mileage rates per HMRC on business mileage and nothing else. What is best will depend on OP's taxable income.1
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