Expenses - My car is on finance!

[kellsbells]

Can I ask....my car is on finance and without it I wouldn't be able to work, am I able to claim a percentage back through expenses (or can I not as it was purchased before I became self employed?) also what about insurance?

thanks!
x

[Lou]

Can I ask....my car is on finance and without it I wouldn't be able to work, am I able to claim a percentage back through expenses (or can I not as it was purchased before I became self employed?) also what about insurance?

thanks!
x

Not too sure tbh, BUT

i have an accountant and he asked for all my figures this yr, my car is also on finance and he said he would work out whether it made more sense to claim for the financ or for the milage.

i suggest you get some expert advice

sorry no help really xx

[berkschick]

You can either claim 40p per mile OR claim your car as a capital expense which is a bit of a nightmare TBH.

We were told the 40p the better way financially but that was before petrol and tax went up so much!

To claim your car as a capital expense, you have to fill in a long tax return and the car then belongs to your business and if/when you sell it, you would have to put the money you recieve for it through your books as earnings too.

[Alibali]

I was also advised that the 40p per mile was the best option, and it's easier to work out. I hope they increase allowance soon though to keep up with rising fuel costs.

[cloud9]

i was also advised by the accountant that the 40p per mile worked out more beneficial and as i now do my own accounts it is a lot more simple this way