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Frustrating i have to go with a Manual!
andyuk
 

Posts: 189
Joined: Jul 2011
Location: GLOUCESTER
Post: #1
Frustrating i have to go with a Manual!

Hi there i am in a frustrating situation that i would love a Auto but i have to settle for a manual!

I am a sole trader & I can put 20% of the value of the car per year against my earnings on a Manual but only 10% on the auto!

Very frustrating as I wanted the Auto but if I keep the car for 3 years I could claim more than £7000 Extra back if I ordered the Manual over the auto.

It's all to do with the emissions & anything under 160 I can claim 20% back & anything over 160 i can only claim 10% of the value of the car back. The manual is 149 & the Auto is 174!

Arrrr!!!!!

Dynamic SD4 Manual Red with Black contrast & Panaramic Roof, Vortex Interior, 20" Alloys, Privacy Glass, Black Headlining
(This post was last modified: 17-08-2011 10:03pm by cjfp.)
16-08-2011 11:14pm
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paulus599
 

Posts: 641
Joined: Mar 2011
Location: Gateshead
Post: #2
RE: Frustrating i have to go with a Manual!

That's why we need the 8 speed box with the stop/start.

SD4 Prestige Coupe Auto, Fuji White, Pano roof, Park assist, Powered tailgate, Style 6 alloys, Element interior, Adaptive Dynamics. Build date: WAS 21/10/2011 Delivered 13/12/2011
Now: Evoque SD4 Coupe
Gone: TTS Roadster
Gone: Mini Cooper S
Gone: Mercedes SLK
17-08-2011 09:30am
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Mike
 

Posts: 92
Joined: Jun 2011
Location: Yorkshire Coast
Post: #3
RE: Frustrating i have to go with a Manual!

Hi
Yeah, I'am in exactly the same posistion had an auto for years but back to manual down to the 20% write down allowance.

Firenze Red Dynamic SD4 Man
Red Black Leather
Pan Roof
Shadow Alloys
Black Roof and Headlining
Privacy Glass
Delivered 27/1/12
17-08-2011 10:01am
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andyuk
 

Posts: 189
Joined: Jul 2011
Location: GLOUCESTER
Post: #4
RE: Frustrating i have to go with a Manual!

Still I am over the moon I am gonna have my Evoque in January even though it's a manual! It's a great tax break for us sole traders to be able to offset 20% of the value each year just wish the auto came in under 160 emissions!

Maybe it will in the future?

Dynamic SD4 Manual Red with Black contrast & Panaramic Roof, Vortex Interior, 20" Alloys, Privacy Glass, Black Headlining
17-08-2011 02:42pm
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ED209
 

Posts: 1,128
Joined: Aug 2011
Location: durham
Post: #5
RE: Frustrating i have to go with a Manual!

Must be nice, having all these tax breaks (or as i like to call them fiddles lol) being employed and paying PAYE tax is a pain in the ass.
17-08-2011 05:54pm
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Charlie
No Longer Registered

Posts: 515
Joined: Oct 2010
Location: UK
Post: #6
RE: Frustrating i have to go with a Manual!

So are VAT returns! Laughing
17-08-2011 06:02pm
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Daigriff
 

Posts: 655
Joined: Apr 2011
Location: North Wales
Post: #7
RE: Frustrating i have to go with a Manual!

I didnt know that!! I was about to change from a manual to auto box as Ive had an auto for the past 7 years. Maybe I'll leave it as it is!

Anyone know a better accountant than the one Ive gotCrying

Arrived 16th December 2011: 5 door Prestige SD4 auto in Barolo black with ambience interior, pano roof, privacy and 20" style 6 alloys.Very Happy
(This post was last modified: 24-08-2011 09:10am by XFullFatTim.)
17-08-2011 06:27pm
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mark_n
 

Posts: 1,720
Joined: Jul 2011
Location: London
Post: #8
RE: Frustrating i have to go with a Manual!

Andy, as I've tried to explain to you in PMs, you can write off the expense of the vehicle (initial cost - resale) over your period of ownership whether you have manual or automatic. What changes is the timing of the tax relief. For a lower emissions vehicle, it's 20% per year, for a higher emissions vehicle, it's 10% but when you sell the thing, the difference between the book value and the resale price is available as a write-down so that, over the period of ownership the total write-down allowance (WDA) is the same. For a higher emissions vehicle, the write-down is biased towards the end of ownership.

Keep in mind too that if your car costs £30k, you will have a WDA of 10% of £3k. However, that doesn't mean you actually get a £3k subsidy from HMRC to run your Evoque. You only save the tax you would have paid on the WDA, for a 20% tax payer, £600, for 40%, £1200. The depreciation of the Evoque is going to cost you real net of tax GBP.

The effect of the rules is to change the shape of cash flow of tax saved over the period of ownership rather than the total amount. However, in a situation where your business is expanding and you move from a 20% to 40% tax rate during the period of ownership, there are actually advantages to delaying WDA because you will get tax relief at a higher rate.

YMMV, of course, which is why I suggest you talk to your accountant. For old dogs like me who have retired, none of this applies and it pays simply to pay using the lowest rate of interest incurred (on money borrowed) or foregone (on money from savings).

Mark

Evoque was great, now in an RRS SVR
17-08-2011 06:45pm
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Charlie
No Longer Registered

Posts: 515
Joined: Oct 2010
Location: UK
Post: #9
RE: Frustrating i have to go with a Manual!

Griff, you need to be very careful what you use a car for in order to claim tax relief. Wouldn't be many professions you could claim an Evoque was for sole business use.
17-08-2011 06:51pm
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mark_n
 

Posts: 1,720
Joined: Jul 2011
Location: London
Post: #10
RE: Frustrating i have to go with a Manual!

Charlie's correct. The idea that you can put all your petrol and servicing as well through the business sounds fun to start with until HMRC start asking for a breakdown of business and private use and apportion the costs. At the least, you should maintain verifiable records of business mileage undertaken to defend your corner. Sorry if I sound like a boring accountant, I'm (was) an engineer and I've been there, done that.

Mark

Evoque was great, now in an RRS SVR
17-08-2011 07:04pm
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