A quick question as my experience is more towards limited companys than sole traders (something I aim to improve).
If a company car is introduced into a sole traders business does it follow the same rules as a limited company in respect to capital allowances and using CO2 emissions to find the CA percentage ?
actual costs less private usage disallowance, together with capital allowances less private usage disallowance
- you work out which is best in the first year and stick with it.
The difference is that in a Limited company, where the car is in the company name, the director is an employee.. and using a company car attracts class 1 NIC.. that is why most owner directors keep the car personal and instead claim mileage
I'm a little confused, I followed the link that was posted and read on that page:
Key expenses, allowances and reliefs if you're self-employed
The expenses, allowances and reliefs that you can get vary from business to business. It isn't possible to provide a complete list here, but some of the key ones are listed below - with links to more information.
Capital allowances
You can get capital allowances on the cost of:
plant and machinery - including cars, vans, computers, equipment, tools
So a sole trader can take capital allowances on a car ? so are you saying that the rate isn't calculated from the emissions with an allowance for private use ?
-- Edited by spongesmith on Friday 30th of August 2013 07:25:51 PM
Sole traders and partnerships can use either of the two methods of charging car costs to the business: vouched business miles times rate; or car costs (fuel, repairs, depreciation) reduced by ratio of vouched business to personal miles, with depreciation being replaced by capital allowances similarly reduced on the tax return.
(Being able to charge 100% of the capital cost of a sufficiently low-emission car to tax in year 1 - reduced by the personal mileage %age - was very welcome - pity that's gone now!)
