Bring in HP car finance already started 18 months ago

Claire01702
Claire01702 Registered Posts: 5
in Tax
Preparing a personal tax return. Want to bring in clients personal car for business use. HP already started 18months ago. Do I bring in car at market value and ignore hp repayments. Or bring in car at HP loan value after 18months (i.e. what originally paid for car less finance repayments over 18months) and continue to allow tax relief on HP interest?

Comments

  • Duchess1
    Duchess1 Registered Posts: 85
    is the car going to be a business asset?
  • Claire01702
    Claire01702 Registered Posts: 5
    yes
  • douglasstroud
    douglasstroud Registered Posts: 298 Dedicated contributor 🦉
    I would say market value of when the car is introduced to the business, then claim WDA % with a deduction for the private use (you may also be able to claim the interest on the HP as this is still basically a loan)

    Have you run the figures? Would claiming the mileage not work out to be more beneficial?
  • Claire01702
    Claire01702 Registered Posts: 5
    Great thank you for your comments and useful advice on this, yes will compare to mileage claim to see which is most beneficial.

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