clarification of car/tax situation please

[Nicky74uk]

Apologies if this question has already been covered.

I am due to start looking after my first children in March.As a result I am leaving my current full time job and therefore will be returning my small company car.

My partner has a 6 seater lease car through his work but unfortunately his insurance only covers me to drive it for SD&P so I am unable to use it for the childminding. *His company will not permit us to take out our own insurance and quote the T & Cs of the lease that state that the car is not to be used for business other than my partners work.

We therefore have no choice but to hand back my partners lease car and use the extra money available to purchase a private vehicle.

With this in mind would we be able to claim back a percentage of the vehicle cost through tax as it is an essential part of my childminding start up costs?

I know I can claim the business mileage but it’s the initial cost under the above circumstances that I’d like clarification of.

Personally I don’t see any reason why I couldn’t and I appreciate that I wouldn’t be able to claim against the full cost (as we will also use the car for non-business) but maybe some of you have other views ?

Thanks in advance.

[Straws]

you claim mileage allowance of 40p per mile, no other motoring expenses or capital allowances can be claimed on the car.......... or you can claim the actual cost of car expenses for childminding purposes,petrol, MOT, insurance, repairs, in addition capital allowances can be included. this is based on 25% of the cars vaule, ........... most childminders claim 40p per mile, debbie is the best one to answer this question for you.

Straws xx

[aly]

yep deb is the best but it's 1 or theothernot both.

[Chatterbox Childcare]

My advice is not to buy a vehicle until April in the new tax year as you will not benefit this year.

Do a mileage sheet for the year and then work out which is your best way to claim. Either .40p a mile or Capital Depreciation. .40p a mile is exactly that and it covers all the costs of the car.

Capital Depreciation allows you to claim the business percentage of your costs relating to everything with the car, petrol, MOT, service, repairs, car wash, valeting, screen wash etc... the actual depreciation is also based on the value of your car and the business percentage and you can claim 20% on a car with 167bpm or less or 10% when it is above (I found that most cars needed for our jobs are above).

You can also claim the interest back if you have a loan for the car and would need to check with the IR on whether it is for mileage or depreciation and whether it is a percentage or the whole amount (I think mine was the whole amount but the laws are constantly changing).

I found that capital depreciation was better for me but it isn't always and depends on the number of business miles/personal miles percentage.

Whichever way you go you must continue with it for the term that the car is with you.

I have written a simple spreadsheet that works all the figures out for you so pm your email if you want a copy.

Any questions, call out.

[Nicky74uk]

My advice is not to buy a vehicle until April in the new tax year as you will not benefit this year.

Do a mileage sheet for the year and then work out which is your best way to claim. Either .40p a mile or Capital Depreciation. .40p a mile is exactly that and it covers all the costs of the car.

Capital Depreciation allows you to claim the business percentage of your costs relating to everything with the car, petrol, MOT, service, repairs, car wash, valeting, screen wash etc... the actual depreciation is also based on the value of your car and the business percentage and you can claim 20% on a car with 167bpm or less or 10% when it is above (I found that most cars needed for our jobs are above).

You can also claim the interest back if you have a loan for the car and would need to check with the IR on whether it is for mileage or depreciation and whether it is a percentage or the whole amount (I think mine was the whole amount but the laws are constantly changing).

I found that capital depreciation was better for me but it isn't always and depends on the number of business miles/personal miles percentage.

Whichever way you go you must continue with it for the term that the car is with you.

I have written a simple spreadsheet that works all the figures out for you so pm your email if you want a copy.

Any questions, call out.

Thanks for the reply Debbie.

Just one question, what does the 167bpm stand for ?

I will PM my email address for the spreadsheet, thanks in advance.

Nicky

[Chatterbox Childcare]

Thanks for the reply Debbie.

Just one question, what does the 167bpm stand for ?

I will PM my email address for the spreadsheet, thanks in advance.

Nicky

I believe that it is the omissions on the car

[dt1979]

I would love a copy of your spreadsheet please

Thankyou

Donna

[xshellbellex]

could I also have a copy of your spreadsheet please

[Chatterbox Childcare]

The spreadsheet is for Capital Depreciation and doesn't help anyone with mileage at .45p

[MrAnchovy]

You can try

this

spreadsheet - it needs updating for 45p, so if you find it useful let me know and I will update it.