Confused re new car and expenses - help please!

[Shamai]

Hi I purchased a 7 seater car for CM purposes in October 2012 - the cost was £5,200. I'm now doing my accounts and I'm not sure where I need to put this cost as I obviously use the car at weekends on a personal basis. Is it a capital expense? I think I can claim a percentage of the car's cost/running expenses or claim for mileage but not sure if I can claim all these in the same year. If it is a percentage, how is this calculated?? Sorry if I'm being a bit dull :blush:

I've tried calling HMRC but their lines are too busy - my fault for leaving this til last minute! Any advice would be gratefully received. xx

[tulip0803]

If you decide to claim the car as a capital allowance you need to continue to claim this way for the whole time you have the car. To claim the car as a capital allowance you cannot claim 45p a mile but you need to work out the % of use for work and personal say 60/40 and you can claim 60% (if that is your business usage) of all bills related to the car petrol/servicing/cleaning etc. You need to keep all receipts relating to the car. You cannot claim capital allowance one year and then 45p a mile the next unless you change vehicle.

Capital allowance relates to the depreciation of value of an asset so say 8% for a car so you can claim 8% of value this year + expenses.

Chatterbox is best to give you full answer - she explains on this thread http://www.childmindinghelp.co.uk/forum/book-keeping-accounts-tax-expenses-national-insurance/121803-new-car-what-can-i-claim.html#post1280309

[Shamai]

If you decide to claim the car as a capital allowance you need to continue to claim this way for the whole time you have the car. To claim the car as a capital allowance you cannot claim 45p a mile but you need to work out the % of use for work and personal say 60/40 and you can claim 60% (if that is your business usage) of all bills related to the car petrol/servicing/cleaning etc. You need to keep all receipts relating to the car. You cannot claim capital allowance one year and then 45p a mile the next unless you change vehicle.

Capital allowance relates to the depreciation of value of an asset so say 8% for a car so you can claim 8% of value this year.

Chatterbox is best to give you full answer - she explains on this thread http://www.childmindinghelp.co.uk/forum/book-keeping-accounts-tax-expenses-national-insurance/121803-new-car-what-can-i-claim.html#post1280309

Tulip - that is so helpful - and miraculously makes sense to me - thank you so much!