NickFrog Posted April 1, 2010 Report Share Posted April 1, 2010 Hi!I have never had a car on finance so I could do with guidance. I need a car for business use (Nissan Qashquai). I am self-employed non-VAT registered and a partner in a partnership with my wife.I'd like to know if there are any form of finance where I can simply put the monthly payment as expenses so that I do have to pay tax on that, providing it's legal of course.Thanks a lot.Nick Link to comment Share on other sites More sharing options...
teknow Posted April 1, 2010 Report Share Posted April 1, 2010 I was self employed for 11 years.Looked into all sorts of options - vans are best because there is no benefit in kind on them. Likewise motorcycles can be passed off as "plant equipment" I believe.Like you I'm no expert but you'll pay a shed load of tax on a car.If you can you are better off leasing.But ultimately but the car private and claim 40p/mile for the first 10,000 miles and 25p thereafter for your genuine business use. If you do this, you are paying for all repairs/maintenance out of your own pocket.The days of "company cars" are long gone my friend. My advice, keep it simple and don't get into trouble with HMCE. Take it from someone who did! Link to comment Share on other sites More sharing options...
PaulB Posted April 1, 2010 Report Share Posted April 1, 2010 Are you set up as a Sole Trader or Limited Company? Link to comment Share on other sites More sharing options...
NickFrog Posted April 1, 2010 Author Report Share Posted April 1, 2010 Are you set up as a Sole Trader or Limited Company?Sole Trader as part of a Partnership. Link to comment Share on other sites More sharing options...
Purdie Posted April 1, 2010 Report Share Posted April 1, 2010 Are you set up as a Sole Trader or Limited Company?Sole Trader as part of a Partnership.NickCertainly a few years ago there were significant tax breaks running a car as a partnership compared to as en employee or Director of a limied company.TBH I would take proper professional advice - I can recommend someone who could provide this if you need it - not a mate or relative. Link to comment Share on other sites More sharing options...
NickFrog Posted April 1, 2010 Author Report Share Posted April 1, 2010 Thanks guys for all the answers ! I purposely did not call the accountant as he goes on a bit and he tends to confuse the issue rather than answer the question.Looks like the 40p a mile (I only do 10,000 miles) might be the simplest solution indeed, even if I have to keep a log of all the trips. Surprised how cheap it is anyway, as it works out at £240/month inc. VAT over 24 months, non-maintained for a 1.6 Acenta. Link to comment Share on other sites More sharing options...
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