Discussion
Having enjoyed early retirement for some years I now find the dreaded boredom setting in, my sense of fulfilment within the working world needs a top-up.
Decided, after years of flirting around the margins, to set up my own little wedding car hire business. I have one vintage car (pre 1930) which I purchased five years ago which is perfect for chauffeur drive hire and plan to purchase others in due course. The business is not particularly for making bundles of cash more toward personal satisfaction and interest whilst providing good service. Of course I expect to make decent profit!
My question is am I still able to claim on the expenses against the car purchased five years ago?
Decided, after years of flirting around the margins, to set up my own little wedding car hire business. I have one vintage car (pre 1930) which I purchased five years ago which is perfect for chauffeur drive hire and plan to purchase others in due course. The business is not particularly for making bundles of cash more toward personal satisfaction and interest whilst providing good service. Of course I expect to make decent profit!
My question is am I still able to claim on the expenses against the car purchased five years ago?
I believe so. S57 of the Income Tax Act 2005 states you can claim relief for any revenue expenditure (capital items have separate rules) incurred wholly and exclusively for the purposes of the trade, that would have been allowable had the trade commenced prior to the expenditure, for up to seven years prior.
The tricky bit will be convincing HMRC that you bought the car and incurred any expenditure on it with the sole purpose of setting up the business, rather than buying it as a hobby and then deciding to use it for a business.
The tricky bit will be convincing HMRC that you bought the car and incurred any expenditure on it with the sole purpose of setting up the business, rather than buying it as a hobby and then deciding to use it for a business.
Legend83 said:
I believe so. S57 of the Income Tax Act 2005 states you can claim relief for any revenue expenditure (capital items have separate rules) incurred wholly and exclusively for the purposes of the trade, that would have been allowable had the trade commenced prior to the expenditure, for up to seven years prior.
The tricky bit will be convincing HMRC that you bought the car and incurred any expenditure on it with the sole purpose of setting up the business, rather than buying it as a hobby and then deciding to use it for a business.
Thanks Legend83, Hmmmm difficult then as I did buy the car as a hobby and will use it still as such but with the business attached as well.The tricky bit will be convincing HMRC that you bought the car and incurred any expenditure on it with the sole purpose of setting up the business, rather than buying it as a hobby and then deciding to use it for a business.
Expect when I add another car or two it will be a little easier to claim for these.
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