on VAT and cars.
Take a look here
on cars and capital allowances.
As your car has CO2 emissions over 130g/km it will go into a single
special rate pool due to the private use
where you will get an 8% annual writing down allowance on a reducing balance with an adjustment use. Your initial writing down allowance will be £1,960 (£35,000 x 8% x 70%). The written down value would be £32,200 (£35,000 - £2,800). The second year WDA would be £1,803 (£32,200 x 8% x 70%). The written down value would then be £29,624.
The capital allowance is a deduction from your business profit. It does not necessarily tie in with the six year loan term. It's a simple reducing balance basis until you sell it or withdraw it from the business or it is written off at which time there will either be a balancing allowance or a balancing charge.
You can also claim as an expense in your accounts 70% of the finance costs and 70% of the annual running costs. Some people put all the running costs through their profit and loss account and then add back the private use element in their adjusted profit computation where the capital allowances are also taken account of. Others simply put through the business use element through the profit and loss account so there is no need add back.
I hope this helps but let me know if you have any further questions.