Purchase or lease a second hand car for Driving Instructor

I’m trying to get my head around the current tax position and accounting requirements with purchasing a car for use as a driving school car. I’m self employed and need to purchase or lease a car which will have dual controls fitted. I know that cars with dual controls are now no longer allowed to use the simplified expenses mileage claim (which I have previously been doing).

On trying to read the latest on the government website, it would appear that if I was to purchase a second hand car with CO2 emissions of over 50mg/km, it will only qualify for a ‘special rate allowance’ of 6% per year?

The value of the car depreciation will far outweigh this. So for example, if I buy a car for £20,000 then I can claim £1200 each year? But the business ‘me’ has paid out £20,000 from its profits to purchase the car or taken out a loan/pcp etc.

How is all this accounted for? Would I be better to lease and claim 100% of the monthly lease.

I’m sure I’m not understanding this correctly. Can someone explain? I want to make sure I’m using the most tax efficient way of financing a vehicle that I cannot do my job without.

Then you should definitely talk to your accountant to get proper professional advice tailored to your circumstances.

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Yes tried that once before. I ended up telling the accountant you could no longer claim mileage! I’ve since been put off accountants. It’s a strange one. All the accountants I’ve previously employed or spoken to have been happy to take my money, give advice. But won’t be held liable for that advice of incorrect!

Hello @jamkat28

As @ian_roberts correctly mentioned, we would recommend speaking to an accountant. If you don’t have an accountant, we have a panel of accountants to choose from, for more information, please see the following link:

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Thank you all for your replies. However my post was written in the hope of not involving accountants. I’ve since found my answer elsewhere.

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