New Car On Finance , wat do i claim?

**michellekev** · 13-02-2010, 03:33 PM

HI there,

I purschased a new car last may 09 plate and i am paying it on finance every month. I was wondering what i put down on my books for claiming for it? I went along to the local inland rev office and the lady said i can claim a percentage of finance for how much i use the car, i was thinking of 70% as i use it every week day for childminding. So i have been putting down 70% usage every month of the finance amount in my books. I am just wondering if this sounds right to any one? or has any one else purchased a car on a monthly finance basis and if so what have they been told to claim for?

thanks
michellekev xx

**claireLouise** · 14-02-2010, 12:26 PM

The problem with claiming this is when you sell the car you MUST pay Capital Gains Tax when you sell the vehicle. It is much simpler to claim for business miles at 40p per mile for each busienss mile you travel.

Hope this helps.

**Minstrel** · 14-02-2010, 01:06 PM

it also has to be an exact calculation. you need to keep exact milage records on how much is busines and how much is personal use and calculate the % from that.

debbie knows more so i will leave the correct answer to her but i dont' think the way you are doing it is correct.

**Chatterbox Childcare** · 14-02-2010, 04:20 PM

You cannot just guess at the business percentage, you need to keep a record of business miles against personal miles. You may be able to claim finance doing mileage so check again with the IR but if not this think will give you more detail

http://childmindinghelp.co.uk/forum/...ad.php?t=52130

**michellekev** · 14-02-2010, 08:57 PM

ok thanks to all of you for your help, will ring them again i think and see if i get a clearer answer. If not will just do business miles.

i hear some childminders changing their cars every 3 years to keep their expenditure down, does anyone understand the meaning of this?

thanks michellekev xx

**Chatterbox Childcare** · 15-02-2010, 08:32 AM

Originally Posted by claireLouise

The problem with claiming this is when you sell the car you MUST pay Capital Gains Tax when you sell the vehicle. It is much simpler to claim for business miles at 40p per mile for each busienss mile you travel.

Hope this helps.

You only pay if the car is sold for more than the written down value

**Chatterbox Childcare** · 15-02-2010, 08:34 AM

Originally Posted by michellekev

ok thanks to all of you for your help, will ring them again i think and see if i get a clearer answer. If not will just do business miles.

i hear some childminders changing their cars every 3 years to keep their expenditure down, does anyone understand the meaning of this?

thanks michellekev xx

Michelle - it isn't hard to do capital depreciation but what percentage of your car is business? without this information it is impossible to say which is the better. Once you work it out pm me the details and I can work out which way is better for you