First time tax return - Capital allowance calculation on vehicle

[timerichcashpoor]

Hello

This my first tax return as self employed. My business mileage is quite low, aprox 3,000 p.a. so I guess that claiming capital allowances is better for me than the simple and I am trying to calculate the capital allowance on my car. I own it and intend to keep it, the value at the start of the business was £17,000. Am I correct in my reading of the HMRC guidelines that the amount is 18% (£3,060)?

Many thanks

[Lambs]

T,

Basically, yes, assuming your car's emissions are below the 130g CO2/km band (otherwise it's only 8% rather than 18%). But you need also to adjust the claim for any non-business, or "private use" as it is commonly called. So the maximum claim will be at 18% but if you use your car 50% privately then you will only be able to claim 50% of the allowance. If your simple calculation of 3,000 miles is based only on business mileage, it may yet prove to be the superior claim. Kind regards,

Lambs

[timerichcashpoor]

Thank you, that is very helpful information and something I didn't spot when reading the HMRC site. I have checked and the car is 134g CO2 so as you you advise the simple method of calculating might be a better option, especially after the business proportion of use being taken into account.