Can you claim the PCP car finance using cash basis

Mastermix

Free Member
Oct 5, 2022
3
0
Hi all, new to the group so please be gentle,
I am a self-employed sole trader and I used to use the simplified method for claiming car expenses at .45p mile.
However, I have now sold that car and have a new although more expensive (Second Hand) Electric Car with 0 emissions.
The car was £43k and I am paying £730 on a 4-year PCP and I paid £4k as a deposit.
I will be using the car for 50% business (around 8k miles) and 50% private (around 8k miles)

Question is, I don't think I can claim the full 100% (or any) capital allowance on this as it is not a new EV (its second-hand) is that correct?
If I now use the cash basis, can I claim for 50% of the PCP ? what about the deposit, can I also claim a portion of this back

Thanks in advance for any advice.
 

DWS

Free Member
Oct 26, 2018
1,652
4
564
Bridgend, South Wales
Best thing would be to get a professional to read through the contract and would then be able to give the correct tax advice, you do not mention VAT was this charged initially up front or is it added to your monthly payments? Sometimes this would be an indication on how to treat it for tax and accounting purposes.
 
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