How Does Buying A New Car Effect My Tax

paul7g

Hello,

I have a full time job and a just started a second job (soletrader business).

I use my current car a lot for my soletrader business in the evenings and at the weekend.

I am going to get an account soon (feel free to recommend), however i am aware that you can put down a certain % of your car costs and depreciation as a business expense.

I am considering buying a new car in 2016. How does this affect my business expense in terms of tax?

Paul

Stheno

paul7g wrote: »

Hello,

I have a full time job and a just started a second job (soletrader business).

I use my current car a lot for my soletrader business in the evenings and at the weekend.

I am going to get an account soon (feel free to recommend), however i am aware that you can put down a certain % of your car costs and depreciation as a business expense.

I am considering buying a new car in 2016. How does this affect my business expense in terms of tax?

Paul

I'd ask an accountant if I were you it's relatively complicated

lstmd

am I correct to say it depends on percentage of car use private versus business. How would bik affect this?

Stheno

lstmd wrote: »

am I correct to say it depends on percentage of car use private versus business. How would bik affect this?

That's literally tipping the iceberg.

It depends on total business mileage, who/what owns the car (i.e. company versus individual) whether it is bought outright or leased.

There are myriad combinations here, which is why OP needs an accountant

Graham

Stheno wrote: »

That's literally tipping the iceberg.

It depends on total business mileage, who/what owns the car (i.e. company versus individual) whether it is bought outright or leased.

There are myriad combinations here, which is why OP needs an accountant

If the OP is a sole trader, what company?

Stheno

Graham wrote: »

If the OP is a sole trader, what company?

Missed that, apologies.

Still relatively complex though

Gloomtastic!

If you use your car 50% of the time for business, you claim 50% of the expense against tax. If you're registered for VAT, only VAT against diesel is claimable.

As for a new car. The last I heard (3/4 years ago) you can claim up to €23,000 against tax as a sole trader.

paul7g

Gloomtastic! wrote: »

If you use your car 50% of the time for business, you claim 50% of the expense against tax. If you're registered for VAT, only VAT against diesel is claimable.

As for a new car. The last I heard (3/4 years ago) you can claim up to €23,000 against tax as a sole trader.

Thank you. So if i use my car 50% for work (sole trader business) and i'm registered for VAT, i can claim €23,000 back in the same Tax year or is this €23,000 spread out over a number of years.

Hoping to meet with an accountant this weekend.

Gloomtastic!

paul7g wrote: »

Thank you. So if i use my car 50% for work (sole trader business) and i'm registered for VAT, i can claim €23,000 back in the same Tax year or is this €23,000 spread out over a number of years.

Hoping to meet with an accountant this weekend.

I was told in a single tax year. However, if you did it every year I'm sure they'd have issues.

If you ask 10 different accountants the same question, you'll probably get ten different answers. Remember they're aim is to make money off you and to avoid a run-in with the Revenue, it's not necessarily to save you tax. :rolleyes:

paul7g

Gloomtastic! wrote: »

I was told in a single tax year. However, if you did it every year I'm sure they'd have issues.

If you ask 10 different accountants the same question, you'll probably get ten different answers. Remember they're aim is to make money off you and to avoid a run-in with the Revenue, it's not necessarily to save you tax. :rolleyes:

Good point :-) Then who do i ask :-)

Thanks for your help on this.

Gloomtastic!

paul7g wrote: »

Good point :-) Then who do i ask :-)

Thanks for your help on this.

Contact your local Revenue office perhaps? They're usually pretty helpful.