December 2005
Came as a surprise to me.
Old friend who I had a chat today mentions that since I am self employed , have a big advantage in either buying/contract hire of a new car.
Since its hearsay hes not sure of it.
Any knowledgeables having info on this??
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Somebody pointed out to me this entry on the eBay 'how to sell a car' forums. Just put http: in front of this. Beware a couple of 'naughty' words, but it's pretty hilarious(ly naive).
//forums.ebay.co.uk/thread.jspa?threadID=400102934&tstart=0&mod=113339
3779311
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Elsewhere on 
GSB is correct. The simplified method only appies when your turnover is below the VAT threshold. In addition, if you decide to use the simple method you have to stay with it until the vehicle is changed - you can't swap back and forth to get the advantage every year.
The 25% of initial purchase is correct, and is called Capital Allowance (CAs). As said elsewhere the maximum purchase price of the vehicle for CAs to apply is £12k. For instance, if you where to buy a car for say £15k, the 1st year CA would be £3000 (25% of £12k), the 2nd year £3000 and so on. You do not lose out completely on the full value however. When you sell the vehicle you can claim a Balancing Allowance, which is the difference between the Capital value in your accounts and the amount you receive. eg: In year 3, the brought forward value of the car above would be £9000. Say you part ex it for £7000, you would be able to claim a balancing allowance of £2000.
Of course all of the above figures also have to be adjusted for any private use.