Anonymous
Share this content
0
1085

Purchase of a vehicle - Driving Instructor

Driving Instructor Vehicle

Hi all, I am hoping someone can offer some advise on a situation I have come across.

I have recently taken over completing the accounts and self assessment for a self employed driving instructor. Everything is very straight forward except how the purchase of his car has been dealt with over the past two years. The instructor purchased the vehicle in August 2014, its emmissions are 98g/km, it is purely used for business and was purchased by a personal loan which the instructor continues to pay on a monthly basis. The car has never been capitalised or added to a fixed asset register. For the past two years the entire personal loan payments (not just interest) have been added to the accounts as an expenses as "car hire".

My view on this is that capital allowance of 18% should have been claimed on the car in the main pool or simplified expenses claimed based on the mileage. I would appreciate your thoughts as this is not something I have come accross before.

Thanks 

Replies

Please login or register to join the discussion.

avatar
13th Jan 2018 10:49

Have you looked into the possibility of 100% AIA?

Long time since I looked into this but this may help:-
https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca23510

Thanks (1)
Share this content