fatima04:


That's the thing imagine a £5000 limit on an income of £2,500. Eventually it will tempt and start piling. Business sense

I know, but i had to find a smart way to pay cheaper insurance, save fuel, avoid failing MOT, i know i did a gamble and i don't like where i am. If i get into financial distress, i'll just have to sell the car and buy another later, but i doubt it. The car is worth 10.5k if i resell. as it was fully financed on loans +loans anyway

Lexusgs430:



Might be a blessing in disguise ....... Imagine adding another 400 pcm for 3 years ...............

Na, my limit was 200 per month

Lexusgs430:



Might be a blessing in disguise ....... Imagine adding another 400 pcm for 3 years ...............

Don't worry will keep you updated, helps i have an understanding partner. Its the nigerian connection that is...


Plus i'm a doctor and can do locums to double my monthly

DaveChapelle:


Na, my limit was 200 per month

Maybe for a Toyota Aygo........ But your long throat, nah Mercedes, BMW, Audi, Lexus etc etc, that your long throat go dey pull..........

DaveChapelle:



I know, but i had to find a smart way to pay cheaper insurance, save fuel, avoid failing MOT, i know i did a gamble and i don't like where i am. If i get into financial distress, i'll just have to sell the car and buy another later, but i doubt it. The car is worth 10.5k if i resell. as it was fully financed on loans +loans anyway

My point is financially, one has to fully avoid overgearing....

Because once circumstances might change, loss of job, conduct investigations, suspensions etc etc........

fatima04:
My people let's discuss, when buying a car on finance which is better between HP and PCP. Don't think we have ever talked in details about this.

I have read so many things online and inclined to go for PCP because of the advantages of changing cars easily, and attached perks like free servicing and MOT and all with the ability to just give it back at the end of the "renting" period. However, I am wary of that subject to terms and conditions of fair wear and tear.

So anyone with experience of both should pls share.

You own the car at the end of your term with a HP. You don't with a PCP.

Worse still, at the end of a PCP term, you have to pay a baloon payment to the dealership to buy the car.

Doubly worse, is that if you write off a car on a PCP deal, you owe the dealership.

There might be discrepancies in valuation of the cars worth between the dealership and the insurance company.

If the insurer values the car less than the finance provider, you will have to personally cover the shortfall....unless you took out gap insurance in the past.

Obviously if you take out gap insurance, your monthly outgoing on the car goes up.

The smartest way to finance a car is through a bank loan. That way, at least the car is your own from day 1.

Lexusgs430:


Both methods of financing a vehicle are individualistic based .........

If you employer offers PCP plans, your payments would be deducted before tax........... Or you route payment as a business expense and write off against tax........

If you apply for PCP on an individual basis, you might end up paying 400 pcm for 3 years...... What happens if job circumstances changes ?


HP - You pay more for the vehicle over 3/4 years, but the car is eventually yours.............

PCP --- All you really have to buy is petrol ....... All maintenance, insurance, MOT not required, etc etc is on the PCP provider....... Except you have a knife put in your tyre, and that is your responsibility, not forgetting limited mileage ..............


Loads more to talk about...... But son needs to be on the field for his mandatory football practice ................

You can't claim monthly car payment as an out of pocket tax-deductible expense. The car is either yours or it isn't.

If it's yours then the best got can do is claim mileage expenses, the value of which reduces after the first year...assuming you're a sole trader or limited company director.


If it isn't yours, but belongs to the company you work for, thr only impact on tax is an indirect reduction of corporation tax obligations, due to the fact that the money you used to buy the car has reduced the company's profit margin.

There is no scenario I'm aware off where you can legally claim monthly car payments as a tax-deductible expense

Lexusgs430:


My point is financially, one has to fully avoid overgearing....

Because once circumstances might change, loss of job, conduct investigations, suspensions etc etc........

if circumstance change either way, i'm still screwed loan or no loan

nihilistjnr:


You can't claim monthly car payment as an out of pocket tax-deductible expense. The car is either yours or it isn't.

If it's yours then the best got can do is claim mileage expenses, the value of which reduces after the first year...assuming you're a sole trader or limited company director.


If it isn't yours, but belongs to the company you work for, thr only impact on tax is an indirect reduction of corporation tax obligations, due to the fact that the money you used to buy the car has reduced the company's profit margin.

There is no scenario I'm aware off where you can legally claim monthly car payments as a tax-deductible expense

Yes you can........ Can a vehicle be deemed tool of a trade?

Lexusgs430:


Paying back every month, also means you are using your card like a debit card, and not a debt card ........... It really palys no part in credit building ..........

A report placed on your file and other lenders might not like your financial habit/decision .................

It does play a part, you don't get penalized for being financially responsible.

justwise:


It does play a part, you don't get penalized for being financially responsible.

I never mentioned getting penalised....... If you read my initial position, i said credit card is not required to build credit history, but it could help build credit history.......

DaveChapelle:
if circumstance change either way, i'm still screwed loan or no loan

But of circumstances changes and one is not overgeared.....

The load is lesser..........

Lexusgs430:


Yes you can........ Can a vehicle be deemed tool of a trade?

You can only claim business mileage at a maximum rate of 45p/mile, you cannot legally or illegally claim car repayments. Go on HMRC website to find out what you can or cannot claim for.

Lexusgs430:


I never mentioned getting penalised....... If you read my initial position, i said credit card is not required to build credit history, but it could help build credit history.......

..you also said that paying up credit card balance in full will result in one's credit card been withdrawn.. credit does not work that way..

justwise:


..you also said that paying up credit card balance in full will result in one's credit card been withdrawn.. credit does not work that way..

It works that way..... I know loads of people that had credit withdrawn, due to either lack of use or not enough to justify issue......

Do your research.........

claremont:


You can only claim business mileage at a maximum rate of 45p/mile, you cannot legally or illegally claim car repayments. Go on HMRC website to find out what you can or cannot claim for.

Ever heard of clever accounting?.....

claremont:


You can only claim business mileage at a maximum rate of 45p/mile, you cannot legally or illegally claim car repayments. Go on HMRC website to find out what you can or cannot claim for.

Would you self assess, vehicle finance payments?...?

Lexusgs430:


Yes you can........ Can a vehicle be deemed tool of a trade?

He's not a taxi driver na?

nihilistjnr:


He's not a taxi driver na?

Lol.......

What about a builder buying a Volkswagen Amarok?....

But you agree that it's tax deductible?....

Lexusgs430:


It works that way..... I know loads of people that had credit withdrawn, due to either lack of use or not enough to justify issue......

Do your research.........

Lack of use..yes but for somebody who is using the credit card responsibly i don't see how the card will be withdrawn.

when they are charging annual fee on the card, will be surprised if they withdraw it

Lexusgs430:


Lol.......

What about a builder buying a Volkswagen Amarok?....

But you agree that it's tax deductible?....

I don't believe it is.

justwise:


Lack of use..yes but for somebody who is using the credit card responsibly i don't see how the card will be withdrawn.

I am talking about hearsay, i know people it has personally happened to.......

I would say again, do your research........

DaveChapelle:
when they are charging annual fee on the card, will be surprised if they withdraw it

Oga, do your research...... We are all learning...... This banter is an educating process.........

nihilistjnr:


I don't believe it is.

I am not here to convince or confuse you.... But when you find my position, was not a pigment of my imagination.........

Kindly post an update...........

Lexusgs430:



I am talking about hearsay, i know people it has personally happened to.......

I would say again, do your research........

I have done that and it did not support your line of argument.

Lexusgs430:



I am not here to convince or confuse you.... But when you find my position, was not a pigment of my imagination.........

Kindly post an update...........

Do you not think you're being unnecessarily vague and evasive?

I don't work for HMRC. If you claim these kind of expenses, please share how you do it.

As far as I'm aware, you can't even claim petrol as a business expense for your personal car. So I'm really interested to understand if there's a more tax efficient way out there.

nihilistjnr:


Do you not think you're being unnecessarily vague and evasive?

I don't work for HMRC. If you claim these kind of expenses, please share how you do it.

As far as I'm aware, you can't even claim petrol as a business expense for your personal car. So I'm really interested to understand if there's a more tax efficient way out there.

Best to follow the rules Of HMRC which is align to how you explained it. Claim mileage at 45p and be on your way

Clever accounting as it called has a way of catching up and causing issues in the future. Once HMRC start on someone matter they sit down belleful and start dashing fines , penalties and sleepless nights . No need for that stress. They even closing all the leaks these days

nihilistjnr:


Do you not think you're being unnecessarily vague and evasive?

I don't work for HMRC. If you claim these kind of expenses, please share how you do it.

As far as I'm aware, you can't even claim petrol as a business expense for your personal car. So I'm really interested to understand if there's a more tax efficient way out there.

Speak with your accountant...........

LagosismyHome:


Best to follow the rules Of HMRC which is align to how you explained it. Claim mileage at 45p and be on your way

Clever accounting as it called has a way of catching up and causing issues in the future. Once HMRC start on someone matter they sit down belleful and start dashing fines , penalties and sleepless nights . No need for that stress. They even closing all the leaks these days

Lol...... Oga, I would not argue with your position.... Over 20 years of clever accounting and still waxing...... If you overdo, it would catch up with you......

justwise:
[/b]

I have done that and it did not support your line of argument.

No argument......

LagosismyHome:


Best to follow the rules Of HMRC which is align to how you explained it. Claim mileage at 45p and be on your way

Clever accounting as it called has a way of catching up and causing issues in the future. Once HMRC start on someone matter they sit down belleful and start dashing fines , penalties and sleepless nights . No need for that stress. They even closing all the leaks these days

Of course, I know that. I was hoping that he would stop dancing around the questions and say what this 'clever accounting' is

With the IR35 regulatory changes about to hit the private sector in 2020, HMRC is ready to change am for clever by half niggas