Cooper D Self employed tax bargain

[4810510]

I've ordered a Cooper D and thought I would let anyone who is, like me, self employed know that the Cooper D is a real bargain.

Normally when you buy a car you only get to £3000 of capital allowances against your taxable profits. However because the D has only 118g/km emissions you get 100% against your taxable profits. This makes a Mini Cooper D a real bargain!

Hope this helps someone.

[AndyParker]

sounds like some awesome advice for someone! great to know

[Minnie Mouse]

Welcome to Mini2 4810510

Glad to see the tax man is working to help you get a mini

[Lurcher1]

Now thats interesting , popped in the dealer today to pick up brochure and enquire re del dates but was put off by price and been considering other makes.
As I am self employed (ADI) this disclosure may change things , will look into it further.

[Benfrain]

Quote: Originally Posted by 4810510 (original)

I've ordered a Cooper D and thought I would let anyone who is, like me, self employed know that the Cooper D is a real bargain.

Normally when you buy a car you only get to £3000 of capital allowances against your taxable profits. However because the D has only 118g/km emissions you get 100% against your taxable profits. This makes a Mini Cooper D a real bargain!

Hope this helps someone.

Holy Crap Batman! Can you point me in the direction of any literature on this? I smell something good, and it smells like a Mini D coming my way...

[4810510]

Quote: Originally Posted by Benfrain (original)

Holy Crap Batman! Can you point me in the direction of any literature on this? I smell something good, and it smells like a Mini D coming my way...

Here is a link to the HMRC website:


You will see that it says that the allowance will end on 31 March 2008. However this years budget confirmed that it will continue.

Sorry seems I can't post a link coz I'm new. Try looking on the HMRC website or take out the spaces below:

www . hmrc . gov.uk/capital_allowances/cars.htm

Sorry if bending the rules upsets someone.

[Scrogg]

Get your post count up a bit and you'll be able to post your link like this!

[CC07ERS]

Quote: Originally Posted by Minnie Mouse (original)

Welcome to Mini2 4810510

Glad to see the tax man is working to help you get a mini

He is paying for mine aswell 24p per mile tax relief on all biiz miles .

[Benfrain]

Quote: Originally Posted by 4810510 (original)

You will see that it says that the allowance will end on 31 March 2008. However this years budget confirmed that it will continue.

Been a few months since I did my last return so I can't remember, can anyone more knowledgeable advise...

1. Does this mean I could put the full amount of the car (lets say £15K) against my earnings/profit for a year, effectively wiping out a large proportion of taxable income?

2. Is it also possible the £15K could be spread over a few years (e.g. £5K a year)?

Thanks in advance

[4810510]

Quote: Originally Posted by Benfrain (original)

Been a few months since I did my last return so I can't remember, can anyone more knowledgeable advise...

1. Does this mean I could put the full amount of the car (lets say £15K) against my earnings/profit for a year, effectively wiping out a large proportion of taxable income?

2. Is it also possible the £15K could be spread over a few years (e.g. £5K a year)?

Thanks in advance

Effectively the total cost of the car is seen as a business expense so if you had taxable profits of £30k and spent £15k on a CD then you would only have to pay tax on the remaining £15k.

In terms of spreading the cost over a number of years, I don't honestly know the answer to that one. If you say only had taxable profits of £5k then you can carry the unused allowances forward.

Hope that helps.

[4810510]

Sorry, I should have pointed out at the start of this post that it is worth taking advice from a tax accountant or HMRC before ordering a CD.

[rentagas]

my accountant says this does not apply............................................: (

Thought it was too good to be true

[Benfrain]

Quote: Originally Posted by rentagas (original)

my accountant says this does not apply............................................: (

Thought it was too good to be true

Can you tell me why? I phoned and spoke to HMRC helpline and they said it is no problem. Any vehicle under 120g/KM is applicable.

What did your accountant say the problem was?

[rentagas]

I've sent him the page given above. I think he's wrong but I'll see what he says..............

He said "You dont trade as a Limited company so there is no affect on your tax relief.
You obtain relief on the value of the vehicle and the percentage of business use"

I'm a sole trader providing vat exempt services and am not a limited company but I'm not sure if that is relavant.

Assuming that my accountant is wrong and i can set off the total cost of the car eg £17,000 in the first year as opposed to £3000 per year-what happens if I sell at 2 years when the car is worth eg £12000. Do I then have to pay tax on £12000 or have I misunderstood?

[rentagas]

The inland revenue were not exactly helpful-clearly they don't want too many people doing this, after all many professional people have a self employed income in addition to their main income-even if it is selling on ebay etc. You can of course post a loss against future income and carry this forward to the next year for a limited number of years, if your annual income is less than your expenses.

Having presented him with the stuff I got from the revenue, my accountant still thinks this is too good to be true (and he's investigating) but:
Tax free
Low road tax
Congestion charge exemption from 2008?
Low insurance group
60mpg
-----------------------does seem rather good

I just need to get Sytner's to serve me!