Hi there,
I have self employment and I use my car about 60% Business 40% Pleasure.
At the moment I am paying myself mileage allowances.I am now looking for a new car and I believe there is a clean car allowance. Would this benefit me? Say the new car cost £10,000 and I spent £8,000 Petrol - on a 60/40 basis what is it I could actually claim back on my Tax form. I assume 60% of Petrol costs but what about the Car Allowance. Plain English please - we haven't all got Accountancy degrees:-)
Car allowance
2 posts • Page 1 of 1
by King_Maker on Fri May 27, 2005 10:59 am
You can only use a mileage allowance, if your turnover is under the VAT Registration limit.
Assuming it is, you can only claim the Inland Revenue's Approved rates of 40p per mile for the first 10,000 miles and 25p thereafter. Finance interest (restricted 40% for personal use)can be claimed on top.
However, you still may be better off caliming 60% of ALL your motoring costs including Capital Allowances in lieu of depreciation.
Assuming it is, you can only claim the Inland Revenue's Approved rates of 40p per mile for the first 10,000 miles and 25p thereafter. Finance interest (restricted 40% for personal use)can be claimed on top.
However, you still may be better off caliming 60% of ALL your motoring costs including Capital Allowances in lieu of depreciation.
- King_Maker
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2 posts • Page 1 of 1
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