You may be able to claim the business car allowance, which is paid on the business tax credit, for your business expenses, such as petrol, food and drinks.
This could save you thousands of pounds.
The car allowance for business is paid as a tax deduction on your business income.
It’s not an extra tax rate but it does help reduce the amount of business tax you pay.
However, you can only claim a car allowance if you are paid by the month you have the car, so it’s best to check whether your business pays a business tax allowance on a monthly basis.
If you can’t, you might have to pay the full tax amount each month.
The full tax charge You will need to file a tax return if you claim the car allowance.
You should include any deductions you can use, such a fuel, petrol or electricity.
You also need to include the amount you paid to cover costs you incurred.
This includes paying for any travel you’ve taken.
You will also need the amount for the car tax credit.
You’ll also need a copy of your business tax return.
To claim a deduction for the business, you need to complete and file a Form T1090, Business Car Allowance Deduction, with the tax authorities.
You can get the Form T2060 from your tax office, or from your bank.
If your business is not registered with HMRC, you’ll need to find out more about how to get your business registered.
Business car allowance The car benefit If you claim a tax credit for business expenses you can deduct business expenses such as travel and petrol.
However if you pay the tax credit you’ll have to deduct business tax on the car you use.
You cannot claim the tax deduction if the car was paid to a business registered with your tax authorities and the car is owned by a company that is not your registered business.
You may also need your vehicle registered.
If a company you own is registered with an address in the same place as your business, it’ll need your business address.
If the business address is in Scotland, you may need to have the address updated to your company’s address.
Business tax relief You may not be able get a car benefit, such an extra rate, if you paid more than £30,000 in business tax over the last 12 months.
You could be eligible for a reduction in tax to help offset the extra business tax.
Business expenses include: fuel, electricity and fuel for your vehicle