Business & Finance

Tax relief vehicles

Can anyone suggest a few vehicles my partner could look at buying with the most tax benefits. He is self employed and needs a vehicle to carry tools, but also to pull our touring caravan and transport us in it. He currently uses a Land Rover but has been told he needs to find another vehcile for better tax relief, any suggestions ? He was thinking of a Warrior type of vehicle.

delsgirl Tue 29/04/08 13:21

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Tom Braider
Tue 29/04/08
14:15

Don't understand your question, delsgirl. The type of vehicle used won't affect the tax benefits; assuming he's not VAT registered, your partner is entitled to claim either 40p for every business mile or a proportion of all the costs of the vehicle (except actually buying it) equal to the proportion of business miles to private miles. Assuming the vehicle was "fit for purpose" - you probably couldn't claim anything for a sports car - it doesn't matter what it is.

delsgirl
Wed 30/04/08
10:04

Question Author

he is vat registered, and he needs a more economical car than the Land Rover, as his accountant said that some vehicles are better than others

Tom Braider
Wed 30/04/08
13:09

If he's VAT registered then he has to claim on the basis of the proportion of costs attributable to business miles. But I still don't understand why one vehicle would be better than another. Suggest you ask the accountnat to explain himself.

jedimistress
Thurs 01/05/08
07:48

Not sure why your accountant has advised this either. Perhaps she suggests buying a work van / transit rather than a general vehicle so that 100% can be attributed to work use, rather than a proportion.

Hence less to add back as private use when doing the tax computations.

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