Tax Deduction - Car - Sole trader

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.

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.

Farma1 said:

You can claim the right percentage of all your running costs

Click to expand...

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.

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?