can i claim back the cost of a vehicle in the first year of trading??

Answer 1

if its been used on legitimate company business yes. however if you own the car yourself all you can cliam for is the mileage.... I forget the current revenue figure it used to be 45p per mile for the first few thousand then it dropped... no idea what it is now.

But be warned if you are putting in a large claim then you need to justify it to the revenue (the only justification they will accpet is soemthign like a diary detailing when and where you went and what milage you did.

Answer 2

Generally speaking the answer is no.

A vehicle is a capital item and its purchase is therefore excluded as an allowable deduction from your profits. To obtain any tax relief you need to turn to the capital allowances regime.

In the year a vehicle is purchased you are entitled to claim a first year allowance. In subsequent years you claim a writing down allowance of 25% of the reducing balance.

Now what vehicle are we talking about? If it is a van or commercial vehicle then FYA is claimable. The rate is 50% for small businesses. If it is a car then the situation is more complex.

A low emissions car can have a FYA rate of 100%.

Any other car does not qualify for FYA but you can instead claim the 25% WDA in this first year of ownership. But, if the car was an expensive car (cost more than £12,000) the the WDA claimed is restricted to a maximum of £3,000 a year.

If there is an element of private use then all the above claims would need to be reduced by the appropriate percentage to leave the claim only reflecting the business use part.

Answer 3

Heck!..I have!
Got a lovely rebate too!
Put it in the hands of your accountants and they will deal with it.
Put the money back into the business though. Good luck!

Answer 4

Only if it is used for buisness purposes only. If it was, you can claim tax relief for all expenses incurred., Like petrol ,insurance, road tax, servicing, repairs, valeting.as well as any interest on H.P. payments.