I'm self employed. I currently have a car and it's in my name, but I do claim the fixed percentage of its costs for business use. (just stuff like picking up supplies and going to meetings etc). I don't have to do anything complicated, I just use my credit card and my accountant sorts it out for me. I have private insurance which is worth about $500 a year. (for 10k cover).
The car I'm looking at buying is $20k, and insurance looks about $700 for private insurance. I'm trying to decide whether or not I should buy it as an individual or as a business.
+ if i buy it as a business, I can claim the GST back and depreciation
(i don't really know how depreciation works, but the way I think it works is that I can claim 30% of the total value each year as a loss and then that's x amount of money that I don't have to pay tax on? Ie if I make $20k profit, I'd only be paying tax on $17k profit?)
- if it's bought by a business it requires business insurance which is at least $1,500.
Can anyone give me some advice/guidance?