Will a chauffeur get FYA?

Will a chauffeur get FYA?

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A client who is a chauffeur has just spent 32k on a new car, which is exclusively for ferrying clients around.

Will we be able to claim the FYA or will allowance be limited to £3000?
Simon Jeremy Lewis

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By User deleted
28th Jan 2005 17:03

In a word.....
no! I asked the same question to the Inland Revenue two weeks ago. (If it was a taxi that had been modified it would be classed as plant & machinery and therefore the answer would be yes.) The treatment according to IR is that it is an "expensive car" and you can only have £3,000 CA's max per year.

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By User deleted
28th Jan 2005 17:29

The restriction does not apply
The normal £3000 restriction on WDA's does not apply to a 'qualifying hire car'

Shame on the Inland Revenue for giving such inaccurate advice! Furthermore I advise them to refer to the IT CA manual para CA23510!!!

The £3k restriction does NOT apply to a car that is provided wholly or mainly for hire to, or the carriage of, members of the public in the ordinary course of a trade, if it is not normally hired to or used for the carriage of the same person for 30 or more consecutive days or 90 days in any 12 month period.

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By User deleted
29th Jan 2005 01:11

100% FYAs on some cars
I don't think your client's £32k car qualifies, but some cars would qualify for 100% FYA...(yes whole cost off one year's profit)...

Cars with a CO2 emissions level of less than 120g/km currently qualify for 100% FYA.

Such cars include a Ford Fiesta c.1250cc diesel and Toyota Prius hybrid.

For companies that provide cars to employees as benefits there are further tax breaks reducing the class 1A NIC on some of these cars as the BIK is discounted hence the class 1A NIC charge is less.

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