Income tax - how to calculate car buying on hp

Agencies and other headaches, keys and cleaners, running costs and contracts...in short, all the things we spend so much of our time doing behind the scenes.<br>
sas401
Posts: 33
Joined: Fri Jul 01, 2016 2:27 pm
Location: Wales

Income tax - how to calculate car buying on hp

Post by sas401 »

I am just doing my income tax for the furnished holiday let for last year but wondering how to calculate the purchase of a car on hp?
We paid a small deposit and part ex'd a car and remainder on hp. Obviously only a percentage is used for business but have no clue how to work values/interest out?
zebedee
Posts: 1270
Joined: Fri Sep 12, 2014 2:57 pm
Location: yorkshire dales

Post by zebedee »

I just claim mileage. Never claimed anything for the cost of the vehicle.

Something in my memory is prompting me to think there are complications if you do anything else, but I can’t remember the detail. Someone else will respond with a more helpful answer I’m sure. :D
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Moliere
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Joined: Thu Mar 08, 2007 10:45 pm
Location: Magalas, Languedoc

Post by Moliere »

HMRC allow you to claim a standard mileage rate of 45p per mile for the first 10,000 business miles pa. This is supposed to cover fuel, depreciation, insurance and other costs.
I'd suggest you just claim it as it's a lot easier than the hypothetical alternatives, and probably reasonably realistic too, unless you drive a Ferrari.
Jumping is just dressage with speed-bumps.
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