Claim as an expense

City boy turned country

Hi all,

I have a quick question. I am currently self employed and my job involves quite a bit of travel to different client locations. I need to buy a new car and I was wondering if I can claim the car as a taxable expense. And if so, does it have to be a brand new car for me to claim it or is there any criteria under which, I can purchase a 2nd hand car?

I would ask the accoutants but I need to get a new car on Monday or Tuesday and won't have time to ring them.

Thanks

CBTC

Ally Dick

City boy turned country wrote: »

Hi all,

I have a quick question. I am currently self employed and my job involves quite a bit of travel to different client locations. I need to buy a new car and I was wondering if I can claim the car as a taxable expense. And if so, does it have to be a brand new car for me to claim it or is there any criteria under which, I can purchase a 2nd hand car?

I would ask the accoutants but I need to get a new car on Monday or Tuesday and won't have time to ring them.

Thanks

CBTC

You can write off the car over six years as a capital expense, and the expenses associated with the car e.g. petrol, servicing, new tyres as a taxable loss. However, maybe it would be best not to claim it ALL as a business expense, if the car is used for social stuff as well. My wife is self employed and we usually claim 50% of her diesel and car upkeep expenses as a taxable expense, and write down one twelfth of the cost of the car as a capital expense. That's on the advice of our accountant

Itchianus

Ally Dick wrote: »

You can write off the car over six years as a capital expense, and the expenses associated with the car e.g. petrol, servicing, new tyres as a taxable loss. However, maybe it would be best not to claim it ALL as a business expense, if the car is used for social stuff as well. My wife is self employed and we usually claim 50% of her diesel and car upkeep expenses as a taxable expense, and write down one twelfth of the cost of the car as a capital expense. That's on the advice of our accountant

Wear & tear is over 8 years - so I'd say your wife's accountant has told her to write off 1/16 rather than 1/12.

Ally Dick

Itchianus wrote: »

Wear & tear is over 8 years - so I'd say your wife's accountant has told her to write off 1/16 rather than 1/12.

You're right. Thanks for clarifying. My head is a bit tender today ! :D

Bigus

If you're charging vat maybe go for a small van, say fiesta diesel

rent a car next week and get a proper answer from your accountant, before you do the wrong thing buying the wrong vehicle.