Taxi Driver Online

Is anyone else having difficulty finding info on the changed rules for vehicle depreciation

There is no mention anywhere on the HMRC website of how the new rules apply to taxis the staff on the helplines aren't qualified to answer "technical questions" as far as I can make out you can now only claim £3000 a year instead of the 40% you used to get as a first year allowance on a new taxi but if your a builder and buy a van you can claim 100% in one go !!!!!! which would wipe out your entire liability for one year

Is this the government bashing cabbies or are we supposed to be eligible for the 100% but HMRC are trying to keep it from us

I am fairly sure that my account claims 25% on the reducing value each year.

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Grandad,

No they've changed that its now only 20% and if the vehicle is worth more than £12000 it is limited to a maximum of £3000 for CARS !

There is no info anywhere on whether they classify taxis as cars or business equipment ! Under the old rules Taxis were definitely listed as eligible for the 40% first year ( brand new vehicles only)

I don't have to worry about the £12,000 rule or the brand new rule either.

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Grandad,

I asked a similar question a while ago and was informed by the tax office
that a car bought to use as a hackney was still classed as a car and subject to a limit of £3000 per year but a purpose built taxi such as an E7 or a TX4 was classed as a commercial vehicle and should be claimed under the new Annual Investment Allowance

Eg Profit after allowable expenses = 15,000
Annual Investment Allowance 100% - 27500 (cost of new E7)
Loss for year to be carried over to next year -12500

(Reduce Annual Investment Allowance by percentage of personal usage before application.)

I was also told that interest on loans and HP were not to be included in the AIA but claimed in the allowable expenses section.

More detailed explanation can be found in this older post.
http://taxi-driver.co.uk/phpBB2/viewtopic.php?t=10906