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Tax relief vehicles

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delsgirl | 13:21 Tue 29th Apr 2008 | Business & Finance
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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.
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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.
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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
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.
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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