Capital expence

[Christopher Johnson]

Hello.
Could someone let me know if I can claim 100% against tax if I buy a estate car just for business use.
I am self employed and currently using my own car and claiming mileage but putting a lot of miles on my car which is reducing its value.
If so could someone explain how it works, I will be buying a car around the 6 or 7k mark.
Thanks

 

[Scalloway]

You can't claim 100% capital allowances on an estate car. It is a car as for as HMRC are concerned. A van would be different. The rules for cars are here.

https://www.gov.uk/capital-allowances/business-cars

 

[Christopher Johnson]

Ok thanks.
So if I got this right I purchase car and on my next tax return put the whole 6k as a capital expense so I will not pay tax on that 6k.
Also as I'm using this car just for work purposes I can tax insure and fuel it all as tax deductible expenses.
What are implications if I should sell is there a tax expense there.
What I Do not understand on the gov website it all the pool and co2 emmisions or is that if its used for private use aswell.
Thanks

 

[Scalloway]

What you can claim as capital allowances depends on the CO2 emissions. You need to check this when you buy the car.

If you are just using the car for work you can claim all the running costs.

When you sell the car you will either get a balancing charge or a balancing allowance. If you sell the car for more than you have set against tax you will pay tax on the profit you make.

 

[Christopher Johnson]

Ok thanks for that.
If I purchased a van instead just for business purposes say for 7k can I offset that 100% as aia.
Reason for asking is im likely to make 45k profit this year as iv had very little overheads working away from home and I've hardly claimed any expenses just mileage for using my own car and a few tools and work clothes. I get free digs and not sure whether i could have claimed sustenance as ive worked nights.
I just want to give a bit less to tax man as it's looking like a 16k tax bill

 

[MikeJ]

PENSION!!!