Putting a car on my Tax self assesment

[C_H_U_B_B]

Hello All,

I bought a car out of my personal savings before i started my business. I now use the car for %75 of the time for business. Can i put this on my self assessment as it was bought before the business opened with my own money.

Likewise with my PC which i use %100 for business.

[buildersmate]

Car
You could, but its complicated and you are often better off just charging it to yourself at 40p per mile (essentially offsetting your income by all your business miles at 40p). Unless you do lots of miles.

[jedimistress]

You would claim the capital allowances (75%) on the value of the car at the beginning of the time you began your self employment.

[C_H_U_B_B]

This will be my first year so i am planning to put it as a first year allowance. i just wanted to know the pros and cons.

Thanks for the answers, any more are still welcomed.

[jedimistress]

You cannot claim first year allowance unless you bought the items during that tax year. It doesn't matter that it is your first year of trading.

First year allowances can be claimed in any year of trading, it depends on when you bought the items you are caliming first year allowances for.

[C_H_U_B_B]

So in my case, i cannot claim on the car as it was not bought in that tax year but i can claim on the petrol/mileage as per usual every year.
Likewise i cannot claim on the PC which was not bought in that Tax year.
Lastly I bought my printers for the business(prestart) with a loan but the date of purchase are before the tax year. I am guessing i would have to enter relavent info for the previous year to make a claim on it.

[jedimistress]

Yes you can claim capital allowances (25%) but not first year allowances. (You cannot claim 50% fya for a car anyway). You cannot claim capital allowances for the car AND mileage allowance.

You either claim mileage at the Inland Revenue rate, or costs of running car which includes your capital allowances. You cannot claim both.

I made a typing error above I never meant to write 75%, but 25%.

Yes you can calim, capital allowances on your pc, but not first year allowances as it was not bought while you were in business. The fya apply to when you buy the product and have nothing to do with the year of your trading, wether it was the first or last.

[jedimistress]

Example- You either add up all the running costs of car. Petrol receipts, MOT, Tax, Insurance etc and claim this amount.
OR You claim 40p per mile for the first so many miles and do not include any running costs.

Most people will go for the running costs (proportional to work use) but it can vary on your needs and uses.

To claim the mileage at the HMRC rate you need to keep a list of all journeys in case of HMRC investigation. This can be a bit of a struggle for some.

[C_H_U_B_B]

Thank you very much Jedimistress. The info was very helpful and i do finally get it.

Great Help!