Tax implications on buying a passenger car for commercial use:-

[smlbusbookeeping@gmail.co]

Hi there, can anyone out there advise me on the following:- What are the tax implications on the purchase of a passenger car for a commercial use? Should the car be leased or bought via hire purchase (vehicle finance)? Is it possible to claim any of the maintenence for the vehicle.

Any and all advise is gratefully accepted!

Linda

[geraldenek]

Hello Linda

If the car is only going to be used for business purposes, you can deduct the payments made on a monthly basis for tax purposes. You will be able to claim petrol, repairs and maintenance and licence fees. You will however not be able to claim VAT on the car.

Is the car going to be given to someone as a benefit getting to work and back, seeing clients etc. or is it just going to be at the business premises for employees that needs to use it to see clients