sole trader capital allowance - cars

kev123

Hello.

Sole trader buys a car used half for business, half personal. The car was bought on finance over five years, with a 20% deposit paid at time of acquisition.

Am I correct in thinking:

Capital allowance available on total cost, adjusted for private usage.
Interest on finance available to claim, adjusted for private usage.

Thanks,.

T.C.

That sounds about right.
Initil car cost, multiplied by CA, then proportioned to personal/business use and the business part claimed.
Interest proportion using the same percentage.

Alternatively you could look at claiming business mileage instead - it might be easier!

kev123

thanks for confirming that.

i will work out the most beneficial option.