claiming tax for my car new buisiness

[moosegoose]

hi im asking this question for my wife. who is starting her own cleaning company this week. ideally a van would be good but she has a two door car that will do for now. but we are not sure if the car which she got about 2 years ago. can be tax deductible. ie claiming the initial cost of the car and can all the running costs be claimed back. thanks in advance.

[billie1]

I'm sure during my bookkeeping course they said we couldn't claim tax on cars only on vans. I'm sure one of the accountants on here will beable to give you a definite answer.

[MyAccountantOnline]

we are not sure if the car which she got about 2 years ago. can be tax deductible. ie claiming the initial cost of the car and can all the running costs be claimed back

Yes I assume she is starting as a sole trader. She will need to estimate the value of the car when she commences in business and will be able to claim tax relief on this. The allowance is called a capital allowance.

She can indeed also claim for the car running costs ie fuel, servicing, MOT's, repairs, insurance etc.

She will only be able to claim the business proportion of both, so she should keep a log of the mileage travelled in the car.

If she wants further advice do feel free to contact me direct. I deal with many business start-ups and will be glad to be of assistance.:)

[MyAccountantOnline]

I'm sure during my bookkeeping course they said we couldn't claim tax on cars only on vans. I'm sure one of the accountants on here will beable to give you a definite answer.

Your probably thinking of VAT which isnt generally recoverable for most people on a car.

[taxattack]

hi im asking this question for my wife. who is starting her own cleaning company this week. ideally a van would be good but she has a two door car that will do for now. but we are not sure if the car which she got about 2 years ago. can be tax deductible. ie claiming the initial cost of the car and can all the running costs be claimed back. thanks in advance.

An alternative to Nicola's suggestion is to claim 40p per business mile (up to 10,000 miles, 25p thereafter). If you keep all the records, you can see which works out better taxwise before you submit your first return.

BTW, you could claim the full cost of a van against tax in the first year if your budget will support the outlay.

Chris

[sheilagard]

This is correct


Yes I assume she is starting as a sole trader. She will need to estimate the value of the car when she commences in business and will be able to claim tax relief on this. The allowance is called a capital allowance.

She can indeed also claim for the car running costs ie fuel, servicing, MOT's, repairs, insurance etc.

She will only be able to claim the business proportion of both, so she should keep a log of the mileage travelled in the car.

If she wants further advice do feel free to contact me direct. I deal with many business start-ups and will be glad to be of assistance.:)

[Zeno]

Your probably thinking of VAT which isnt generally recoverable for most people on a car.

You may also be thinking of what used to be FYAs

[moosegoose]

thank u every one for your replies she gone to bed now as she not well but im sure she will be most grateful as now she will not sell the car now and we can still use it weekends,

[taxattack]

hi im asking this question for my wife. who is starting her own cleaning company this week. ideally a van would be good but she has a two door car that will do for now. but we are not sure if the car which she got about 2 years ago. can be tax deductible. ie claiming the initial cost of the car and can all the running costs be claimed back. thanks in advance.

Dont forget to advise your insurers of the business use.

Chris