Note you will probably have some options as to which year to set losses against (probably a choice of 3 - current previous and 3 years ago) - the tax rebate will depend on your marginal rate in those 3 years - ideally you would want to choose the year which had the highest marginal rate of tax - probably the year with most income taxed at 60% marginal rate - adjusted income between 100k and approx 125k - probably the year with highest removal of personal allowance presuming you had some left - ie if income well over 125k reduction would not kick in at 60%.
Understood, and written in an easier to digest way than the HMRC guidelines.
very useful losses help sheet
Extremely helpful so thank you. That's really showed me the different scenarios clearly.
As bd6759 clearly points out claim is restricted to business use only - you have to be careful here that tis should be reasonable over expected period of ownership - not easy to prove anything here ref intentions - onus is on you not to pimp it up though.
This won't be an issue (in my opinion) as this will be a second car. I already have a small car for personal use (and to teach my daughter to drive). I'm planning to buy an EV (or PHEV) and use that for any business travel and for Uber-type driving services or hiring out to earn extra income.
Ref allowable motor the samadian case is NOT your friend here so travel to and from a regular place of work will probably not be allowable as business use of car
In summary unless you can identify high business use that is not akin to commuting with mileage your claim here may be limited.
As per above, I'll use my small car for personal use.
If you expect decent profits and will remain higher rate taxpayer limited company route would tick all the boxes other than the extra admin hassles and probable acocuntancy fees - car claim not limited to business use with very modest p11d charge (0% this year !!!! then 1%/2% next 2 years ) - no automatic higher rate tax if you leave profits within business - much more ameniable travel claim rules (temporary workplace rules for employees much more generous as long as you dont expect to reamin at that site >2 years - or that is your first workplace while working for your company) - ability to get 100% of profits into pension - depending on level of ni you pay this may beat the sole sole trader route. This is presuming the chancellor doesnt destroy some or all of these perks in the budget - he seems to have an unreasonable beef in his bonnet (oops that doesnt sound right) about limited company trader who simple follow the rules as they have been allowed to over the years -preusmably he thinks 19% corp tax and 7.5% tax isnt enough of a hit - he decided to do nothing pre pandemic then had a go about them during pandemic - a bit discrimatory if you ask me as the tax perks for limited companies are all out in the open and known about and only exist due to the authorised apporval by the powers that be that set the rules.
This is an interesting dilemna and I would appreciate thoughts/input.
I considered going down the limited company route. However, I lose out on being able to claim a tax refund for 2018-2019 and 2019-2020 from full-time PAYE employement. So whilst I can make savings in the future (offsetting future car expenses/insurance against limited company profit), this means I can't claim over £40,000 in tax paid over the last 2 years in PAYE employement. Also, I'm not likely to be a higher rate taxpayer in the future. I can't see the advantage of limited company versus self-employed with regards to buying the car.