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#1 18-12-09 12:10:53

Johnstone
Verified Member
Registered: 13-08-08
Posts: 43

P11D

Hi all,
Iam looking to buy a used car for instruction and I know that the tax you pay for private use is based on your P11d, however I have entered the details in one of the ready made calculators and it calculates your tax liability based on the list price of the car, lets say 10k, I will only be paying around 4k for it, so the question is will the tax be calculated on the actual purchase price I pay or is there a better way to do this.
Cheers,
Johnstone.

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18-12-09 12:10:53

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Re: P11D




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#2 19-12-09 09:52:03

sue martin
Verified Member
From: National area franchises
Registered: 21-01-05
Posts: 333
Website

Re: P11D

Hi Johnstone.

This is a little confusing! .. the P11D is only used when employed to detail taxable benefits like company car allowances and the like so will have no basis for any car you intend to buy to use for instruction as in that case you are self employed. Tax allowances for cars and use in self employed driving instructors are taken in a choice of 2 ways
1. You claim 40p.per mile for the first 10k mile a year then 25p per mile after that and no claim for car purchase,petrol,tax,insurance etc. or
2. You claim for usage ie petrol, insurance, repairs etc at the pro rata rate for your business as opposed to private use, then also claim a capital writedown value each year of a percentage of the cost of your car purchase price followed by an adjustment when you sell the car to reflect the actual value.
Which way is better is down to different circumstances but whichever method you choose must be used for the whole time you keep the car.

Hope that gives you a bit of insight
Sue


0800 298 8928
http://thebrightredl.com
The Bright Red L
Online Booking App. FREE TRIAL  http://instructorapps.co.uk/

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#3 19-12-09 11:08:03

Johnstone
Verified Member
Registered: 13-08-08
Posts: 43

Re: P11D

Thanks Sue, as I am new to this there are a few things i am not sure about. I have been to a couple of Business Gateway workshops but have not found them any help at all. I think that they are designed for people right at the start with little or no knowledge of business, I have been in business to business sales, company car etc,etc, however the bit's that i am unsure about are record keeping (how much detail is required), which method of car expenses would be better for a first timer, possibly option 2 less hassle, and after 12-18 months lease a car from say robinsons, could i then gift the car to a family member or would i have to sell it to them.
Johnstone

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#4 19-12-09 11:54:20

sue martin
Verified Member
From: National area franchises
Registered: 21-01-05
Posts: 333
Website

Re: P11D

Hi There,
        If you lease a car that is a separate expense wholly claimable but you would then claim either option 1. or 2. without the capital writedown bit as you wouldn't then 'own' the car as you are leasing , you would need to then purchase the ex lease car from Robinsons if you wanted to sell on... if you 'gifted' the car after that the tax man would complain heartily if you had an inspection at any point. Any expenses can be claimed for, the proof of their legitimacy comes when the tax man takes a look at your accounts, they may never do that, they may do it fairly soon ! various factors determine when they will but always work on the premise they will come one day!
Sue

ps who did you train with?


0800 298 8928
http://thebrightredl.com
The Bright Red L
Online Booking App. FREE TRIAL  http://instructorapps.co.uk/

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