afaik, taxman allows you 25% of purchase price 1st year, then 25% of 75%, then 25% of 50%, then final 25%. (percentages referred to purchase cost), then it's written off as a "dead" asset, but you may have to pay tax if you sell it. if the HP has interest charges, you should be able to claim against that also.
That’s old hat now.
Can claim up to ÂŁ50 grand in one go.
I believe it was 40% in the first year then 25% of what’s left each year after.
As for the hire purchase payments, it’s up to you how you file them as expenses.
You can either put in the total purchase price plus interest in the first year, or just put the monthly payments down as they occur.
Remember that whichever way you do it, you only get 20% of what you claim back.
If you happen to be VAT registered, then you can also claim that.
If you claim the mileage allowance, then you can’t claim the purchase price, as the mileage allowance is for using a private vehicle for work.
The allowance covers fuel, tax, maintenance and insurance.
Actually, it was 44p a mile up until about 5 or 6 years ago.
Depreciation only really applies if you are counting the vehicle as an asset, and when you come to dispose of the vehicle.
If you manage to sell the vehicle for more that it has depreciated to, the Tax man will not come knocking on your door for a slice of the profit.
However if you sell it for less, he may come asking for an explanation.
, but note Baddegg's reply above.
