Thanks.I was a sole trader for the past 5 years. In 2019, I bought a new car. My accountant only allowed an element of the depreciation against my income tax, each year.
Does BIK apply to sole traders?Just make sure you understand the tapering off of the BIK benefit in the coming years.
ie first 35k disregarded in 2024 and 2025 but this reduces to first 20k in 2026 and 10k in 2027.
The government have already extended the scheme twice so there is always the change it could be extended further.
Thanks. Didn't realise this. Not much benefit to me then as a sole trader as I'd use the car more for personal use.BIK is only relevant to cars owned by an employer and used by an employee. A sole trader buying a car and using partly for business and partly for personal use can claim capital allowances in proportion to the amount of business use.
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