# Depreciation on commercial vehicle



## gilboy (25 Oct 2010)

Hi 

I am self-employed and have a commerical vehicle.

I have been off-seting a 12.5% depreciation expense in my P&L accounts for the vehicle. If the loan on the van is repaid in year 4 can I still continue to offset the depreciation expense for the remaining 4 years(as 12.5% depreciation rate implies it can be offset on vehicle for 8 years)

Thanks!


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## DB74 (25 Oct 2010)

Yes


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## brophy (3 Nov 2010)

Sorry for jumping on the thread just wondering if I am eligable for this depreciation write off.

So can anyone that is self employed do this? Have looked on the revenue.ie website and can't find the documentation to show this!

I am self employed now three years and bought a brand new commercial in the first year with the loan being spread over a five year term. Should I have been writing 20% of the value minus the VAT off each year?

If so is there any way I can use the % write which should have been wrote off in the first years or is this now gone?


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## papervalue (3 Nov 2010)

brophy said:


> Sorry for jumping on the thread just wondering if I am eligable for this depreciation write off.
> 
> So can anyone that is self employed do this? Have looked on the revenue.ie website and can't find the documentation to show this!
> 
> ...


 
The depreciation at 20% goes against profits in pl but is added back in profit comp,

as self employed it sounds like you are only doing a pl only

if doing both correct position in current year

depeciation will have no effect on tax bill- both deduction and addback

tax write comes via capital allowances at 12.5% a year- if you have not claimed the capital allowances for year 1, and 2 claim 3 years in year 3 to bring back into line


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