At the moment I've started into self employment as there are bog all jobs. So far it is sporadic and part time. I was wondering how many miles you need to do to justify having a car entirely bought and paid for by any profits of the self employment business ie before the taxman gets his cut of any income?
On the 40.5 p a mile scale for mileage it wouldn't pay at all to buy another car but can you have one entirely for business use that could be bought and paid for (I was think of leasing with maintenance) entirely in this way? I know with mixed use you can have apportionment but that would be a right pain so I'd rather have something entirely separate. Also will the tax man believe you if you say it is entirely for business use if it lives at your home address?
Could you return a car to the road for solely business use and get the self employed profits to pay for it? My every day car I still have but it needs work to get it running again. Would that be something that could be done under this tax efficient umbrella? It's not very economical on fuel though and is 20 years old so I wonder whether there would be a problem? I also have a classic that is very cheap to run but again needs work to make it road worthy. I think the leasing option is the most sensible as it would be a fixed cost and there would be no BIK and fewer complications.
The mileage route claim would be the simplest of course but with the ever rising cost of fuel it will start not to cover even the fuel costs. And I haven't found a good way of tracking your business mileage with a doodad either.
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