Capital Allowances on an electric vehicle bought for business use

So0phZ

I'm hoping for some clarification please. I'm doing the accounting for my father's self-employed consulting business and he bought an electric car for the business which he uses 95% for business purposes.
I am using actual costs and capital allowances but just wanted to confirm if my thinking is right.
The vehicle was bought for £12k with £1,200 deposit and a lease payment of £255.80 per month on a PCP where the vehicle is purchased once the optional final payment is made. Would I in this case use capital allowances for the monthly PCP payment and the deposit and fees?

DullGreyGuy

So0phZ said:

I'm hoping for some clarification please. I'm doing the accounting for my father's self-employed consulting business and he bought an electric car for the business which he uses 95% for business purposes.
I am using actual costs and capital allowances but just wanted to confirm if my thinking is right.
The vehicle was bought for £12k with £1,200 deposit and a lease payment of £255.80 per month on a PCP where the vehicle is purchased once the optional final payment is made. Would I in this case use capital allowances for the monthly PCP payment and the deposit and fees?

First you say you bought it, then you say you leased it, now you say its on PCP which is it?

Leasing, for example, is not CapEx, it's an OpEx item as you never own the asset. 

So0phZ

It is on PCP, a recent webinar provided by HMRC states that a vehicle bought for business purposes on lease arrangements such as PCP or PCH can be claimed under capital allowances as such:
no option to buy at the end - you can claim business expenses on the monthly payments
option to buy - business expenses on monthly payments as well as capital allowance on final payment.
So I believe I've answered my own question. Apologies if I've caused upset or confusion.

DullGreyGuy

No upset just these things require precision and people can be lax with their wording meaning its not possible to answer like people saying they are a sole trader but then going on to talk about their "company" 

Hoenir

Sounds more akin to a finance lease. What's the option to purchase fee? I'm assuming not a huge sum.