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Posted Wed, 29 May 2024 06:52:09 GMT by s_asutay
Hi all! Looking for some guidance concerning self assessment tax returns as a Hackney carriage/black cab driver. Last year I made a purchase, namely a new LPG Hackney Carriage with a purchase price of £39,999. I made a deposit of £4,000 and have financed the remainder of the price at £840 per month. The vehicle has Zero CO2 emissions as noted by the DVLA. My questions are as follows, can the monthly cost of the vehicle be claimed as an expense as the vehicle is a specialised vehicle and only used for the purpose of a Hackney carriage? Am I able to claim the monthly cost over the duration of the finance agreement into the coming years (over the next 5 tax years) or will the cost need to be claimed in full in a single tax year? If one is able to claim the monthly cost over the coming years, am I correct in stating I can only claim £666 which is the vehicle price over the period of the agreement minus interest (£39,999 divided by 60)? Would it be claimed as a Capital Allowance? Am I too correct in stating that the interest too can be claimed as an expense? Many thanks in advance for your suggestions and guidance!
Posted Mon, 03 Jun 2024 14:54:03 GMT by HMRC Admin 19

A Hackney cab does not count as a car for the puproses of capital allowances. You can see guidance here:

CA23510 - Plant and Machinery Allowances (PMA): cars: outline - meaning of ‘car’

As such you would need to look at annual investment allowance instead. You can see the guidance here:

Annual investment allowance

Thank you.

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