Tax deductible cars

[Donnie]

Me again...

 

Does anybody have any info if you can put the likes of a standard RAV4/Vitara through the books as 100 percent tax deductible? I've spoken to people who say they have and some say they can't as it's not legal. 

[Steven P]

I'd say if it is 100% a business vehicle then you can. If it gets private use then not 100%

[swinny]

Your accountants would usually knock 10% off your motor expenses for private use. 

[Squaredy]

46 minutes ago, JDon said:

Me again...

 

Does anybody have any info if you can put the likes of a standard RAV4/Vitara through the books as 100 percent tax deductible? I've spoken to people who say they have and some say they can't as it's not legal. 

This is a question for your accountant really.  

But, if we assume the car is not entirely for business use then you will be taxed on the benefit.  This is done in different ways depending on whether you are an employee or self employed.

[Will C]

Do you have another private car? If yes the work one goes 100% through the books. If you don’t then your accountant will deduct a % to allow for private use.  
 

Some will tell you If it’s work only, It is of cause possible to stop at the shop on the way home. Or go or look at a bit of kit that’s close to your mother in laws/other family members place come visiting day every so often making it a work trip however I couldn’t comment on such things.

[Dan Maynard]

I think the tricky bit is that HMRC won't classify it as a commercial vehicle so the rules are different to a pickup for example. Definitely need accountant advice if you go down this route, if they decide it's a company car then you get whacked with benefit in kind tax which is ugly. In that case probably better if it's your private car and you claim mileage rate as an expense which is tax free.

[Spruce Pirate]

Our old accountant reckoned I could buy a Rolls Royce as a work truck as a sole trader as the HMRC test is slightly different for sole trader vs company, but a) I couldn't and can't afford a Rolls Royce in roadworthy condition and b) it wouldn't be very practical.  The theory still stands though, you can buy anything for work if you meet the criteria, although I'd still check it out with the accountant if I actually wanted to do it.

 

(note the old accountant was perfectly trustworthy and the only reason he isn't still our accountant is due to him being deceased rather than any dodgy advice he gave us about vehicles)

[devon TWiG]

3 hours ago, Dan Maynard said:

I think the tricky bit is that HMRC won't classify it as a commercial vehicle so the rules are different to a pickup for example. Definitely need accountant advice if you go down this route, if they decide it's a company car then you get whacked with benefit in kind tax which is ugly. In that case probably better if it's your private car and you claim mileage rate as an expense which is tax free.

claiming mileage @ 45p per mile ( I think ) is one way ...

[Donnie]

Thanks a lot cheers