Business car for partnership

Loubietoubs

Hello, I intend to purchase a car for business issues only. I’m currently in a business partnership, which is quite small with relatively low turnover. My business partner does not drive currently, so it will just be me using the car. Am I able to claim back the cost of the car (£900 odd) And all insurance and tax? If so, what do I need to do in terms of registering the car etc? Any advice would be greatly appreciated. I should add we are not a Ltd just yet. 

DullGreyGuy

Loubietoubs said:

Hello, I intend to purchase a car for business issues only. I’m currently in a business partnership, which is quite small with relatively low turnover. My business partner does not drive currently, so it will just be me using the car. Am I able to claim back the cost of the car (£900 odd) And all insurance and tax? If so, what do I need to do in terms of registering the car etc? Any advice would be greatly appreciated. I should add we are not a Ltd just yet. 

Are you doing accounting on a cash or accrual basis?

Where is the car going to be kept when not being used for the business?

How will you prove you have no personal use? If HMRC looked into they are unlikely to believe you have no personal use

Loubietoubs

Hello. This is what I’m asking. What do I need to do to put everything in place to ensure they do believe it is used just for work. I do have a car for leisure but don’t want the wear and tear on it or the miles. The one I am buying is 20 years old and will just be used for work. I’m just wondering if I can claim anything if I’m entitled to anything and if so how I can ensure I get it if I’m not entitled then that’s fine. 

Savvy_Sue

Loubietoubs said:

Hello. This is what I’m asking. What do I need to do to put everything in place to ensure they do believe it is used just for work. I do have a car for leisure but don’t want the wear and tear on it or the miles. The one I am buying is 20 years old and will just be used for work. I’m just wondering if I can claim anything if I’m entitled to anything and if so how I can ensure I get it if I’m not entitled then that’s fine. 

But we can't tell you that if you don't answer DullGreyGuy's questions!

I don't know why it matters how you draw up your accounts but DGG does, he's not asking just for fun.

Where you keep it: if it's parked outside your home, then proving there's no personal miles will be somewhat harder than if you can (and do) park it at your office / business premises. 

And bear in mind that if you are driving from customer A to customer B, and stop en route to buy a loaf of bread to take home for tea, I believe that's personal use.

Grumpy_chap

Buying a CAR and justifying that it is only for business use will be difficult.

If you are considering a £900 car, how will such an old model present the business image to customers?  Will such a low cost car be reliable enough?

Anyway, the fact you are considering a £900 car might mean that it is simpler to not put the car through as a business expense and claim mileage instead.
How many miles will you do in a year?
Let's say you do 5k miles and claim 45 pence per mile.  That is £2,250.  Will that cover the cost of the car, insurance, VED, petrol?