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Self Assessment questions
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Author:  Fordon [ Wed May 23, 2018 5:22 pm ]
Post subject:  Self Assessment questions

Hello,

I have searched forum, but couldn't find what I need. I'm really sorry if there was a topic with similar question, but as I said, I couldn't find the answer.

I am a Private Hire driver. I've bought Ford Mondeo for £6.000 and use it as Private Hire. I am the only driver, I don't share my car with other driver/drivers.

I know I can claim money for fuel, repairs, service, parts, licensing fees, radio fees I have to pay monthly to my taxi company, etc.

Can I claim money back for purchase of this Ford Mondeo? I know I can't claim whole £6.000 but if I use this vehicle 80% as a taxi and 20% for private use (shopping, etc) can I claim 80% of value of the car?

Author:  Sussex [ Wed May 23, 2018 7:52 pm ]
Post subject:  Re: Self Assessment questions

Fordon wrote:
Hello,

I have searched forum, but couldn't find what I need. I'm really sorry if there was a topic with similar question, but as I said, I couldn't find the answer.

I am a Private Hire driver. I've bought Ford Mondeo for £6.000 and use it as Private Hire. I am the only driver, I don't share my car with other driver/drivers.

I know I can claim money for fuel, repairs, service, parts, licensing fees, radio fees I have to pay monthly to my taxi company, etc.

Can I claim money back for purchase of this Ford Mondeo? I know I can't claim whole £6.000 but if I use this vehicle 80% as a taxi and 20% for private use (shopping, etc) can I claim 80% of value of the car?

Yes.

Author:  Fordon [ Thu May 24, 2018 12:50 am ]
Post subject:  Re: Self Assessment questions

Thank you. Could someone give some more details please?

Author:  lewes [ Thu May 24, 2018 4:10 am ]
Post subject:  Re: Self Assessment questions

I think you will find it is 18% write down allowance each year

Author:  StuartW [ Thu May 24, 2018 5:09 am ]
Post subject:  Re: Self Assessment questions

Fordon wrote:
Thank you. Could someone give some more details please?


You can claim capital allowances on the car, which basically means deducting a proportion of the cost of the car over several years from your taxable profit so it doesn't all fall in the year of purchase and nothing in later years, which would distort the profit figures.

As Lewes says the annual writing down allowance is 18%.

So 18% of £6,000 is £1,080, but as you've stated 20% private use you can only take £864 off your profit figure (80% of £1,080).

Next year you take the £1,080 off your starting balance of £6,000, which leaves £4,920.

The £4,920 balance left is then subject to the 18% writing down allowance, which is again adjusted to take account of the private use element. So £4,920 x 18% = £886. Adjusting for private use leaves £708. The £886 is then taken off the balance for next year, and so on.

Or at least that's the basic principle of the thing, but the rates may change and there can be other fiddly aspects which aren't covered above, so best ask a professional adviser or HMRC.

For example, I think you can claim more up front for a new car with low/zero emissions.

Author:  lewes [ Thu May 24, 2018 8:14 am ]
Post subject:  Re: Self Assessment questions

As Stuart said if you buy a low/zero emissions you can claim 100% in the first year

Author:  Fordon [ Fri May 25, 2018 2:13 am ]
Post subject:  Re: Self Assessment questions

This is so helpful, thank you so so much, I really really appreciate what you put, it helps me a lot. Thank you very very much!

Author:  wannabeeahack [ Fri Jun 08, 2018 6:32 pm ]
Post subject:  Re: Self Assessment questions

Fordon wrote:
Hello,

I have searched forum, but couldn't find what I need. I'm really sorry if there was a topic with similar question, but as I said, I couldn't find the answer.

I am a Private Hire driver. I've bought Ford Mondeo for £6.000 and use it as Private Hire. I am the only driver, I don't share my car with other driver/drivers.

I know I can claim money for fuel, repairs, service, parts, licensing fees, radio fees I have to pay monthly to my taxi company, etc.

Can I claim money back for purchase of this Ford Mondeo? I know I can't claim whole £6.000 but if I use this vehicle 80% as a taxi and 20% for private use (shopping, etc) can I claim 80% of value of the car?


If you have a receipt

Author:  wannabeeahack [ Fri Jun 08, 2018 6:33 pm ]
Post subject:  Re: Self Assessment questions

next time, let your missus pay for the car and become S/E renting it to you at £10,000 a year...

she makes no profit and you get to claim £10K extra in expenses...

:D

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