Credit Union Loan Query

[faolteam]

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

 

[RedOnion]

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

 

[faolteam]

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

 

[RedOnion]

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?

 

[faolteam]

How does that impact? Is it a lease?

its a taxi you get depreciation as self employed

 

[RedOnion]

its a taxi you get depreciation as self employed

Yes. So how does the loan matter?

 

[faolteam]

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

 

[RedOnion]

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.

 

[faolteam]

cheers