Capital Allowances Query

Shurwhynot · 01-12-2015 10:49PM #1

If someone has self employed income for the first time, how would you calculate the capital allowances on their car?

If someone for example had a 2008 BMW, and used it to travel to somewhere 3 days a week for self employed work, how would I come up with a capital allowances figure when calculating the trading profit?

exaisle · 01-12-2015 11:13PM

If, for example, 40% of your mileage is for business use, and the car is worth €10,000, then your capital allowances in year 1 are: 10,000 x 12.5% = 1,250 of which 40%, ie 500 (business use) is claimable.

OR you could just let an accountant do your return. Their fees are allowable for tax purposes...

Shurwhynot · 02-12-2015 12:21AM

exaisle wrote: »

If, for example, 40% of your mileage is for business use, and the car is worth €10,000, then your capital allowances in year 1 are: 10,000 x 12.5% = 1,250 of which 40%, ie 500 (business use) is claimable.

OR you could just let an accountant do your return. Their fees are allowable for tax purposes...

It's something I'd like to understand myself, plus the self employed income is reasonably low so won't warrant an accountants exorbitant fee.

How would the capital allowances in year 2 and 3 be calculated then?

DmanDmythDledge · 02-12-2015 01:03AM

Exact same in Year 2 and 3 as the example, assuming all the figures are remaining the same.

gerrybbadd · 02-12-2015 12:25PM

You can claim for car expenses, as well as capital allowances.

Form here: http://www.revenue.ie/en/tax/it/forms/claim-car-expenses-capital-allowances.pdf

Capital Allowances Query

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