Right im getting a little confused with what im reading and hoping that someone will be able to clear this up:
I'm in my 1st contracting through my LTD, and I'm looking for some new wheels, had a word with the accountant who said i could write off 20% against my corporation tax up to 3k i think. However having a look today i saw i could claim 100% FYA on capital expenditure if the car was new and below 110 co2 emissions?! (this is where im getting confused)
Now the car i wanted to get before i knew about this was golf 1.9 tdi se, looking to spend about 6-7k anyway which if i did and put it through the company would save me £1,200.
But having read about this 100% FYA deductible car i looked at all the newish, tax band B cars which are starting from around 10k onwards.
So anyway my question 100% FYA - does this mean if i bought a car say 12k, tax band b, low emissions i could completely offset that against my tax? This could mean me not paying any corporation tax at all if i was on less than 60k assuming CT at 20%?
I probably dont have a clue what I'm talking about.. but but any advice would appreciated!