Client is a self-employed private hire driver (slightly less than a taxi), owner driver, bought a Mercedes for 28k, 158G/KM, expected to use 5 years. I am aware cars are not allowed, yet due to the nature of his business (using purely for business, having company sign displayed on the vehicle, licensed and regulated by council, equipment fitted etc). It is in nature a taxi car. I rang HMRC for advice on that explained I want claim this as AIA for my client... but HMRC Technical Advice was very clear NO CARS allowed for AIA.
Now, my question here how do I really account for this 28k for tax purpose which is legal, just, equal to AIA and fair?
Replies (5)
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You can't claim anything equal to AIA.
AIA is available to some cars such as dual controlled cars and Hackney carriages. Your clients car does not fall into this criteria.
Equal to AIA
Over the period of ownership the allowances available will be the same as AIA, just spread over a longer period, if that is any consolation.
Correct
Over the period of ownership the allowances available will be the same as AIA, just spread over a longer period, if that is any consolation.
I should have added "in the first year".
and unless there is some private use adjustment there won't be a balancing allowance on sale...