Can I put a new car on tax expenses and if so how?

[VivalaDiva]

I am looking to buy a 7 seater (see this thread). I would not have thought about it had I not been a childminder, so am assuming it can count as a business expense? Doesn't it have to be spread over a number of years?

Any help gratefully received.

Also if any of you have a people carrier, please let me know if you'd recommend it.

not sure but I think if you do so then you can't count the 40 pence per mile, (my 40pence per mile saves me a lot) I think it is very compliated but will watch this thread with interest!

There are 2 ways of calculating taxes re: car. I claim 40p a mile. I know you can claim it another way, but it is very complicated. You cannot claim mileage. You have to calculate percentages for depreciation and take off percentages for personal use, blah, blah, blah. I think the easiet was is just to claim the generous mileage. Someone might know about the other way more than me, and as you say it is claimed over the years.

I have a 7 seater, Zafira, which is a great car as there is a lot of space and it is not much bigger than a normal 5 seater. However it has hardly any boot space with all 7 seats up. I can fit only a single buggy in there! So I too will be looking to change soon!

you can go about the car in 2 ways. If it is being used ONLY for childminding, so you are therefore not using it to drive around your family in, then yes there is a way to claim back. It is using depreciation of the value etc, rather than the 40p per mile. You would have to work out which is the better way for you.

If however you will use it as your family car as well, then I was told that no, I couldn't claim in that way. I claim 40p per mile and I would say that I am actually better off, even with a 2.4 petrol engine in it!

Talk to the tax office aboutit as they have advisors that can help you.

I have a Spacewagon, and am very happy with it. The good thing is the size and the fact that you can slide the middle and back rows to where you need them, so you can get 7 adults in with enough leg room while having a smaller boot, but on the other hand the very back row is split in the middle and you have to let kids climb over the seat that you can lower as when you have chairs strapped in the middle row it will not slide.

Ooh spacewagon sounds cool will have to google it! Thanks for the advice, doesn't seem worth the hassle of claiming for it - esp as it's going to cost less than my current car.

Thanks

If you do your research you could always get something pre March 2001 and get the cheaper tax as well!

The Spacewagon is cavernous boot space when you have one row of seats up, and not too bad with both of them. We have an import so cheaper still!

It has been replaced my Mitsubishi with the Grandis, which is quite cool as well. Good value for money.

I have a VW Sharan 1.9 diesel which is also a 7 seater, its great for my lot and I can fit child seats in all seats except the midle which just has a lap belt (newer ones have all 7 seats with 3point diagonal).

Its a T reg so I am not bothered about how much mess they bring in (sand etc), have to vax it soon.

It hasn't alot of room with all seats up and being used though so shop around.

As for tax, I would just claim the 40per mile, I use mine for my family as well so I couldnt claim.

I think (though please don't quote me) that another way of doing things, assuming that it will ONLY be used for business, is to lease the vehicle. Then the hire fee could be put though the books along with actual cost of fuel (suggest having a fuel card). This is how I think we did things in a previous retail business, when we had several trucks.
Could be worth looking at.

However, I would say that in general, it will be easier to claim the Approved Mileage Rate.

This is the second year I have claimed for my car. I bought it brand new half way through the last tax year.

I have a column in my accounts for car expenses, petrol, valeting, service, cartax, insurance etc. You have to log all your mileage for business. Business mileage is deducted from yearly mileage and then % is worked out.

My local council have a wonderful business manager who advises childminders who put me in touch with the small business advisor from the Inland Revenue. She came to my house last year to help me work out if it was worth me using the car as Capital Gains. She also gave me advise on other expenses to claim too! As a result I paid £25 tax and NI.

A couple of my other CM friend claim for their cars too, its well worth looking into.

I have a Mitsibushi Grandis. The children and especially me love the car, plenty of room for the growing children and even the double pram fits in the boot with space for bags required for days out.