.png)
.png)
A sole trader has recently purchased a car that will be eligible for 100% first-year allowances. This will be restricted by his 10% private use, but the private use element is likely to increase in future years as the client nears retirement
One of my sole trader clients has just turned 65; he is planning to continue with his business but on a smaller scale. He treated himself to a new car towards the end of the last tax year just before his birthday. The car falls within the CO2 emissions for 100% first-year allowances; it is rated at 99g/km and was purchased in February 2013.
My client will have made just about enough profit in 2012/13 to absorb this first-year allowance and my first question is to confirm that this must be restricted by his 10% private use for 2012/13.
He is not planning to sell the car or to cease his business soon so there will be no balancing charge for a while. However he may work fewer hours in the coming years and clearly his private use is only likely to increase if...
