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Capital allowances on Taxi

Can a sole trader taxi driver claim capital allowance on second hand Car?

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Hi,

I have one client taxi driver, who bought his car 6 month ago. It's not a electric car. Please advise if he can claim capital allowances?

Replies (20)

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By Anonymous.
02nd Jul 2020 12:57

Yes subject to the usual conditions.

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By Tim Vane
02nd Jul 2020 12:57

Yes, probably.

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Hallerud at Easter
By DJKL
02nd Jul 2020 13:07

What does he/she use it for?

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Replying to DJKL:
By SteveHa
02nd Jul 2020 13:34

A pertinent question not making any assumptions, and demonstrative of the quality of questions these days.

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Replying to SteveHa:
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By Anonymous.
02nd Jul 2020 15:24

SteveHa wrote:

A pertinent question not making any assumptions, and demonstrative of the quality of questions these days.

There have been questions from those with no apparent UK connection about foreign tax so I should have maybe caveated that I was referring to UK tax law!

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By paul.benny
02nd Jul 2020 14:05

If the OP neither knows the answer nor has the wherewithal to find the answer* should s/he should be taking on clients?

(* hint - there is quite good and easy-to-follow information on gov.uk)

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Replying to paul.benny:
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By AWeb72
02nd Jul 2020 14:15

Ammmmmmmmmm you're not allowed to say that, I'm going to tell headmaster John.
Sir.....SIRRRRR....Paul is being mean to the vastly inexperienced "accountant" / person purporting to be an accountant.
Just rename this place UK Business Forums and be done with it

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Replying to AWeb72:
Hallerud at Easter
By DJKL
02nd Jul 2020 14:33

Clype.

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Replying to AWeb72:
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By paul.benny
02nd Jul 2020 16:05

We may have assumed that the OP is an accountant. S/he may be a hairdresser preparing to reopen. After all, it's somewhat fatuous to ask their clients about holidays, so maybe tax advice is a substitute.

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Replying to AWeb72:
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By Paul Crowley
02nd Jul 2020 21:33

That Paul not this Paul

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Scooby
By gainsborough
02nd Jul 2020 14:23

Money, this is meant kindly - the basics of capital allowances and conditions and treatment for furnished holiday lets and what to do with an FHL loss (queried in your previous thread) are fairly straightforward questions in tax. If you don't have the relevant tax experience yet in your day to day role, it may be worth working with someone who does.

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Replying to gainsborough:
Oaklea
By Chris.Mann
02nd Jul 2020 15:57

I can see you being in the dog-house for those latest comments.

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Replying to Chris.Mann:
Scooby
By gainsborough
02nd Jul 2020 16:08

Good thing I am used to that Chris!

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By barberbuzz
02nd Jul 2020 16:30

If car is used for business capital allowances can be claimed under the regular rules. As its not electric the 100% for low CO2 unlikely - so 18% or 8% pa on a writing down basis (and with any private use percentage disallowed).
However if the OP is wondering whether 100% FYA allowances on commercial vehicles would be available with it being used as a taxi then I believe not unless the vehicle is of the kind not usually used for personal use such as hackney carriage, black cab or limousine.

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Replying to barberbuzz:
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By AWeb72
02nd Jul 2020 18:07

You might want to check that 8% figure............

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Replying to AWeb72:
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By barberbuzz
02nd Jul 2020 22:30

Apologies
Lower rate only 6% not 8 % fron April 2019.

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Scooby
By gainsborough
02nd Jul 2020 16:49

FYA not available in this case anyway as OP mentions car is second hand but, as barberbuzz states, further detail on the type of car being used and the business use % would be helpful.

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By Paul Crowley
02nd Jul 2020 20:06

OP's prior question was client with FHL and balance sheet
No comment to make
Cannot risk another yellow

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Replying to Paul Crowley:
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By AWeb72
02nd Jul 2020 23:11

With this gem:

"How its possible to claim capital allowances without disclosing financial statement?"

I'll head off to the sin bin now....

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By Paul D Utherone
02nd Jul 2020 23:30

Money wrote:

Hi,

I have one client taxi driver, who bought his car 6 month ago. It's not a electric car. Please advise if he can claim capital allowances?


Probably, with all the usual considerations & caveats
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