Tax Deduction - Car - Sole trader

[aiddan]

Hi,



I am currently a PAYE worker working in the private sector. I also have a side business and am trading as a sole trader. My queries relate to expenses I can claim for my car.

Details are as follows:



Car is owned personally (not by the company)

Car is a 2018 VW Passat - bought in early 2022 for 25k

Car use for sole trader business - approx 80%

Company started trading in November 2022



I have read some conflicting information in regards to expenses claimable. Can the official published public service rate be used for the Km's travelled or do I claim a % of all costs for the car?

As I am paying interest on a loan for the car - is a % of this also claimable?

Can I claim a % of the depreciation of the car? - If so would I be right in saying the calculation would by €25,000 x 12.5 % x Business use %. This calc would be used for 8 years with the value of the car dropping in line with the previous years depreciation.



Thanks for your help and apologies if this has been asked previously.

 

[Farma1]

The facts I know:
You can't claim public service rates - these are only for employees, you can claim a % of the running costs of the car.
You need to keep full records - mileage of all journeys in year and whether personal or business
You need to keep all receipts of running costs - petrol, motor tax, service etc
You can claim the right percentage of all your running costs

The facts I believe but am not fully sure of:
I don't think the interest on the car loan is claimable
I think you can claim depreciation the way you calculate

Hopefully someone else will clarify the bits I'm not fully sure of.

 

[T McGibney]

You can claim the right percentage of all your running costs

80% sounds juicy, and will raise Revenue eyebrows if they get wind of it.

But it's all down to context really.

As always, professional advice is recommended.

 

[aiddan]

Thanks for the responses.

In regards to the 80% - not too concerned with revenue in that regard. I can back everything up, so it will be what it will be.

Any takers on if a % of the interest on the loan can be claimed?