We are looking to buy a new car for our business and we would like to know more about fuel efficient cars given the increasing price of fuel. What car would you recommend and what are the tax implications?
As I do not know the type of business you are in, I cannot comment on the make and model of the vehicle which would be most suitable for you. However, there is quite a difference in the tax reliefs on purchasing a car depending on the CO2 emissions. Cars with a CO2 level of over 160g/km will only qualify for 10% capital allowances each year (i.e. tax relief on 10% of the list price). Cars with a CO2 level between 111 and 160g/km will qualify for 20% capital allowances, while low emission cars with a CO2 level of 110g/km or less will qualify for 100%, meaning that the vehicle can be written off against your profits in the year of purchase. Whilst some of the cars in the low emission range will obviously be electric/alternative fuel propulsion vehicles, the list also includes Audi’s, BMW’s, VW’s, Mercedes etc. The full list can be viewed at http://www.vcacarfueldata.org.uk
I have recently been made redundant and I am now thinking of going into business on my own as an electrician. I am really confused about what I need to do for the taxman to make sure I get it right.
Going into business on your own for the first time can seem very daunting, however there is a lot of help out there to make the process as easy as possible. The HMRC website gives you guidance on the forms you have to fill in and the timescale you have to meet.
In summary, you will need to complete a form CWF, which will let HMRC know you want to become self-employed. You will also need to complete a form CA5601 to enable you to pay class 2 National Insurance Contributions. In addition, you may also need to register as a subcontractor to work in the construction industry and VAT if your sales are to be more than £70,000 per year.
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