Car insurance

[royzart]

Can i claim my car insurance as a legitimate
tax expense...i am self employed

[gingejbee]

No, unless you can show it is used "wholly,exclusively and necessarily" for your business.

[Buenchico]

If you claim 'mileage rates' against your tax (rather than recording actual expenditure on fuel and other motoring expenses) you can't count your vehicle insurance as an additional expense. (The 'mileage' system assumes that the mileage rates include all motoring costs, except the cost of a loan to buy the vehicle).

If you don't use the 'mileage rates' system (but, instead, claim your actual motoring expenditure) you can claim the full amount of vehicle insurance if the vehicle is solely used for business purposes, or a 'pro rata' amount if it's used for both business and personal use.

Chris

[tamborine]

I have as SE for last 25y. Though, HMRI only allow me to claim 40% of petrol exes (as advised by my tax office).

[Skyline D]

Chris's answer is accurate as usual.

Generally yes, but there has to be a private use adjustment to estimate the amount of private benefit in it (so if you use the car half the time for business and half for personal then they'd expect to see half the expense disallowed).

If you use mileage rates (which very few self employed people do) then you can't claim the insurance or indeed any other motoring costs separately.

[royzart]

thank you to you all for your answers