Capital Allowances

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eva518
eva518 Registered Posts: 8
in Business Tax
Hi,

Can someone help me, I am a bit confused with the business and private use on company cars with regards to Capital Allowances, Sole Trader & Partnerships you calculate business use only, and with a ltd company directors and employees do not need any deduction at all as they claim it through the P11D. Can someone let me know if I am on the right path.

Thanks In Advance

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  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
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    Hi,

    Capital allowances claimed for sole traders / partnerships will be restricted by any private use of the asset.

    With a Ltd company there is no such restriction for private usage as this will be seen as an expense of the buisness, however an indivdual who has use of a business asset (say a company car) will be taxed as a 'benefit in kind' the company will also have to pay Class 1A National Insurance.

    Hope this helps.

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