FINANCE NEWS

Jul 31 2017

Claim capital allowances. #auto #body #supplies

#second hand cars uk
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5. Business cars

You can claim capital allowances on cars you buy and use in your business. This means you can deduct part of the value from your profits before you pay tax.

Use writing down allowances to work out what you can claim – cars don’t qualify for annual investment allowance (AIA ).

Sole traders and partners

If you’re a sole trader or a partner you can claim simplified mileage expenses on business vehicles instead – as long as you haven’t already claimed for them in another way.

Employees

If you’re an employee you can’t claim capital allowances for cars, motorbikes and bicycles you use for work, but you may be able to claim for business mileage and fuel costs .

What counts as a car

For capital allowances a car is a type of vehicle that:

  • is suitable for private use – this includes motorhomes
  • most people use privately
  • wasn’t built for transporting goods

What doesn’t count

Rates for cars

The main and special rates apply from 1 April for limited companies, and 6 April for sole traders and partners. The first year allowances rate applies from 1 April for all businesses.





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