Car finance self assesment

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.

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 17,747 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
    Will it work out to actually save tax if you can put some of the costs through as company expenses, versus claiming mileage at the HMRC AMAP rates?  The latter will most definitely be simpler.
  • Jeremy535897
    Jeremy535897 Posts: 10,715 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    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.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.9K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.6K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.