NEW CAR NET
  Taxing Times
  by Charis Whitcombe 01 Jan 07 - 14:25

Posted in news 

The smaller the better: Uncle Gordon is watching you
The smaller the better: Uncle Gordon is watching you

It’s January; and time for the self-employed to revel in the thrill of meeting the Tax Return deadline. Hurrah. As usual, the Inland Revenue is intent on bleeding me dry but there’s one area where they seem almost… generous?

True, I have a miserly preference for small, cheap cars but even so – a 40p-per-mile allowance on business motoring (for the first 10,000 miles) is probably a fair bit more than most people actually spend. Even taking depreciation into account. Those of you running a Dodge SRT-10 (né Viper) might feel differently but that’s your fault for burning 769 gallons of fuel per 10,000 miles.

My accountant tells me that the Revenue grants a pence-per-mile allowance to encourage the use of economical vehicles. And encourage it does. I’ve been scanning mpg figures with a fanatic’s fervour… Fiat Panda, anyone? The 1.3 Multijet Panda tops 60mpg. Or, if you don’t fancy diesel, a petrol-powered Toyota Aygo will give you similar economy. Not luxurious enough? A Mercedes 200CDi doesn’t quite match the fuel economy of a supermini, but still offers 44.8mpg.

Oh dear. If only the Inland Revenue were as obliging in other areas, I might have been able to afford one.  

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  2 Comments on “Taxing Times”

  1. The Panda diesel is an outstanding little car. I’d look no further for budget motoring.

    autonut | 02 Jan 07 - 18:25

  2. Arthur Daley had the right idea regarding your annual encounter with the inland revenue….

    Pitch up either on foot or driving a rust-bucket pad mini, wearing the shabbiest threads you can find, and present your documentation from a crumpled plastic bag.

    AlfaMartini | 16 Feb 07 - 20:36
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