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Tax Laws on using personal car

Discussion in 'Accounting and Legal' started by George Foy, Apr 30, 2020.

  1. George Foy

    George Foy New Member

    Hi there,

    This is my first year doing self assessment. I am wandering what the rules are on using a personal car for business reasons? I bought a car, got insurance and paid road tax. How much of this total cost can I put down as business use because I use the car for social pleasure too.

    Thank you.
  2. Hi George,

    You can use the simplified method which would be to calculate the total miles you've done in that year, multiply by 45p after 10,000 miles would be calculated at 25p. This method takes into account, repairs, insurance, etc.

    Example: You’ve driven 11,000 business miles over the year.


    10,000 miles x 45p = £4,500
    1,000 miles x 25p = £250
    Total you can claim = £4,750

  3. Lupita

    Lupita Member

  4. RoseManningoFt

    RoseManningoFt New Member

    It was really nice to learn about such a thing as Tax Laws. However, I have a slightly different problem. I wanted to ask what taxes will I have to pay if I want to sell my car? And in general, will I have to pay anything? I have been trying very hard for a very long time to sell my father's old car, which we no longer use. The car is quite old and even though it still works, it is not very fast. I am still trying to find a person who will be ready to buy my father's car, but all to no avail. My friends advise me to use scrap my car manchester, but I have never sold a car in this way before and I'm afraid that I will have to pay too much tax for the sale. I hope you can help me with my problem!
    Last edited: Jul 1, 2021

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