Help & Advice
Interest on car loans
To calculate the deduction you apply the business percentage by the interest paid. We recommend preparing a full reconciliation and for this you will need:
• The date the loan was taken out.
• The amount borrowed
• The charges for arranging the loan.
• The payment schedule (ie first payment £250 then 34 monthly payments of £200 with a final payment of £150).
• The business use percentage.
Most of this information will be on the loan agreement documentation.