Accounts on driving instructor car

Hello

My husband is just starting off as a driving instructor.  We’ve purchased a car via a personal loan in his name over three years m.  My plan is to put the monthly payment through as a business expense.  Can anyone tell me if this is incorrect.  

I’ve read that you can claim 100% under an annual allowance but not interest as long as its dual controls.  Not sure what that means in this situation.  

What does it mean in terms of depreciation?

thx

Comments

  • lincroft1710
    lincroft1710 Posts: 17,462
    Photogenic Name Dropper First Anniversary First Post
    Forumite
    edited 28 January at 5:13PM
    I don't know if it is still the case, but I remember years ago, motoring magazines advised against buying former driving school cars, so the stigma may lead to a lower trade-in value
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • uknick
    uknick Posts: 1,610
    First Anniversary Name Dropper First Post
    Forumite
    The accounting for purchase of cars, and other capital assets, can be quite complex.  Before I answer it please clarify;

    a) sole trader or Ltd
    b) if sole trader, cash or accruals accounting
    c) is it a straight forward bank loan, or some other form of finance
  • Hi

    Thanks for responding.  We’ve not started trading yet but the thinking is sole trader and cash accounting. 

    It’s a straight forward unsecured personal loan. 

    We’ve had the pedals fitted to the car. 

    Tanya
  • BoGoF
    BoGoF Posts: 6,788
    Name Dropper First Anniversary First Post
    Forumite
    No, you can't claim the capital repayments on a loan, that is what capital allowances are for. You can claim then interest but if the car is used also for personal use you would need to apportion it.
  • BoGoF
    BoGoF Posts: 6,788
    Name Dropper First Anniversary First Post
    Forumite
    Going to be honest if you don't know the basics of what allowable expenses/depreciation etc then why are you trying to diy?
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards