Best to Buy Car/Van for a self employed person?

pipelaser

Hi Guys,
Just got a new job in Sales that will involve a lot of driving. Going to buy a motor to get around. Ill be set up as being Self-employed. Which means ill be doing my own tax returns.

Im wondering how much more benifical it would be to buy something like a Ford Focus Van than a Ford Focus Car? Someone told me about some new rules that Involve having to pay more Tax on Commercial vehicles now.

I was also wondering if there is a way to claim back tax on the purchase of a used vehicle because im self employed.

Anyone familiar with this sort of thing?

Thanks in advance

mickdw

Ask in accountancy forum for best advice.
Generally if you are using a car for work and private use, you can claim all the expenses related to business against tax. so if you were using the car 50% for business, you could claim 50% of all car running costs. In relation to purchase price, there is a max figure of 24000 (pre 08 cars I think) which is allowable @ 3k per year for 8 years. Again if 50% business use, you can only use 1500 of this against tax. Still it adds up when including tyres petrol and all other costs.

Im not sure how cars bought by the business work out but I think if the business pay fully for the car, you will end up paying Benefit in kind tax on it if you gain any personal use out of it.
In relation to commercial motor tax, there are no real changes once you are a genuine business user. There may be changes for people who were never registered as being in business and wanted to avail of the cheap tax.
As I said, ask an accountant for most cost efficient purchase route

Sids Not

Just a query on the above answer...Now that you can only use your van for business purposes (as per signed declaration at a Garda station) does this mean that you can claim 100% expenses...?