# Credit Union Loan Query



## faolteam (16 Jan 2020)

I have a loan with a Credit union its nearly paid off, i was at first paying over the original agreed price but one day the  Teller in the  CU said to me your paying to much back.

So i decided to cut it way down which was fine for a few years but then i started going into arrears cause this agreed price had caught up with me  and now i must pay back the agreed price of a 100   euro a week,


I only owe 2000 euro should i just pay this back now or do it for 20 Weeks x 100 euros


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## RedOnion (16 Jan 2020)

If you have the money to repay it, just repay and save the interest.


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## faolteam (16 Jan 2020)

RedOnion said:


> If you have the money to repay it, just repay and save the interest.


Sorry i should have said i was trying to get tax relief for the car as im self employed which would be now 5 years


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## RedOnion (17 Jan 2020)

faolteam said:


> Sorry i should have said i was trying to get tax relief for the car as im self employed which would be now 5 years


How does that impact? Is it a lease?


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## faolteam (18 Jan 2020)

RedOnion said:


> How does that impact? Is it a lease?



its a taxi you get depreciation as self employed


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## RedOnion (18 Jan 2020)

faolteam said:


> its a taxi you get depreciation as self employed


Yes. So how does the loan matter?


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## faolteam (20 Jan 2020)

well the longer you have the loan, you get tax relief


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## RedOnion (20 Jan 2020)

faolteam said:


> well the longer you have the loan, you get tax relief


You're making a classic mistake.

You get 2 tax reliefs:.
1. Capital allowances (depreciation). You'd get this even if you'd both the car with cash. The loan has nothing to do with it.
2. Loan interest relief. You get to claim any business interest as an expense. If you've no loan, there's no interest and no relief. But even after tax relief there's an expense. So if you've the money lying around, I'd just pay it off.


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## faolteam (20 Jan 2020)

cheers


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