Expenses help 4 sole trader

[SteveH]

Well I have bought another car as my old one needed replacing.

My question is, how can I use this purchase as a tax write off against my earnings?

The car is used mostly for business but some personal use.

Any help or tips is and are very much appreciated

[AdamW]

Without hijacking Steve's thread I have the same question about a computer

[Ray Stewart]

First. You record every single penny you spend on the car, fuel, servicing, tyres, insurance, road tax, AA/RAC etc. You keep tabs on the mileage you are doing so you can apportion an average % of private use based on mileage and disallow that proportion of the total costs of the car in the year.

Second. You keep a detailed note of your business miles in your diary and charge your business 40p per mile for the first 10,000 miles in a year and 25p per mile thereafter.

The best way will depend on your use of the vehicle but 90% of the time the mileage rate works out much better for you as this is deductible in the business and tax free in your hands.

Computers are now generally written off to repairs in the year they are bought as they have little value after a few months of use. This way the whole cost is allowed against profits in the year you buy it.

I hope this helps but don't hesitate to ask if I haven't explained it clearly enough - it is rather late

[AdamW]

Thanks Ray. I understand what you say, but at the same time don't :P Time to google

[Ray Stewart]

Trying to understand the logic of the tax system is never easy.

The important thing is to keep asking until you are happy that you understand how a specific issue affects you and your business - that's what accountants were invented for

Please feel free to ring me for a more specific explanation to your own circumstances. I will be happy to explain it more so that you do eventually "get" it.

Ring any day 0800 047 0731 during office hours.