Accounts on driving instructor car


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?



  • lincroft1710
    lincroft1710 Posts: 17,462
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    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
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    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. 

  • BoGoF
    BoGoF Posts: 6,788
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    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
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    Going to be honest if you don't know the basics of what allowable expenses/depreciation etc then why are you trying to diy?
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