Self employed vehicle costs

I am self employed and I have been using cash basis and simplified expenses for my vehicle costs until 09/12/2021. On 09/12/2021 I sold my previous car and bought another car and I changed to using cash basis and actual costs for the new vehicle. I sold my previous car for £3365 and paid £7865 for my new car. Can I claim the difference (£4500) as capital allowance in my tax return of 2021-2022? I will carry on using cash basis and actual costs for the vehicle for all future tax periods. I plan to carry on using cash basis and simplified expenses for my working from home costs. Is it ok to use simplified expenses for working from home costs while using actual costs for vehicle costs?

I also wanted to check if I can use the total price for my new car (£7865) as capital allowance,( without deducting the £3365 I recieved from selling the previous car.) My business mileage is 50% of my total mileage so I plan to use £3932.50 as capital allowance (50% of £7865) in my 2021-2022 tax return. Is this correct?

Hi JulietRogers88 Rogers,

Please see guidance here:

Simplified expenses if you're self-employed

Claim capital allowances

Thank you.