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| Author: | taxitone [ Thu Nov 11, 2021 12:16 am ] |
| Post subject: | bounce back loans |
hi all. i know you cant claim for loan repayments in you tax return, you can only claim the interest charged. but if you used your bounce back loan against purchasing a taxi. eg taxi cost 35000 you put 17500 bounce back loan down as deposit and 17500 on finance how do you claim back taxi cost |
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| Author: | grandad [ Thu Nov 11, 2021 8:25 am ] |
| Post subject: | Re: bounce back loans |
In the usual way that you would claim it back. If you used savings to pay for the car you still claim it back. |
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| Author: | StuartW [ Thu Nov 11, 2021 1:43 pm ] |
| Post subject: | Re: bounce back loans |
As Grandad says, you can set the vehicle cost against your profits in the usual way. The way you finance the purchase of the vehicle is irrelevant in that regard, whether it's from savings, a loan, or an HP agreement. So the fact you used a bounce back loan shouldn't make any difference, and the vehicle will just be treated for tax purposes in the usual way. So the 'capital allowances' you can claim are based on the purchase price of the vehicle. Normally you get a %age of the purchase price during each tax year, although the rates can vary depending on the type of vehicle. I think the rate on mine is 18%, so if the purchase price was £35k you could claim £6,300 in the first year against your profits. The £6.3k is taken off the £35k for the second year, and the 18% is applied again. So in the second year you would get (£35,000 - £6,300) x 18%, so in the second year the allowance is £5,166, and so on in later years. As you say, you can also claim interest on any loan or finance agreement against your profits. If it's a specific HP agreement or specific loan to purchase a vehicle then it's straightforward enough. But if it's a bounce back loan then I'm not sure the interest would be claimable unless you can demonstrate that it was specifically used to purchase the vehicle, although I'm not entirely certain about that, although of course the interest payments on BBLs aren't huge anyway. But if you use an accountant they'll know precisely how to deal with all of the above, or HMRC should be able to help if you have specific questions about what you can claim. |
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| Author: | taxitone [ Thu Nov 11, 2021 2:50 pm ] |
| Post subject: | Re: bounce back loans |
hi all thanks for the replies |
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| Author: | wannabeeahack [ Thu Nov 11, 2021 8:20 pm ] |
| Post subject: | Re: bounce back loans |
get yr wife to buy the car and rent it back to you at £12,000/year |
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