HiI am considering by an electric car with PCP or hire-purchase. As a first year allowance , can I can claim full car value or only the PCP amount I have paid?

Hello there, santosherukulla.

I appreciate you reaching out to the QuickBooks Community.

The first-year allowance is a tax relief that allows businesses to claim a 100% deduction on qualifying capital expenditures in the year of purchase. Also, the amount of the allowance is based on the cost of the asset, and it's subject to certain limits and conditions. 

If you're planning to buy an electric car for business purposes, you might be able to claim the first-year allowance. But, the amount of the allowance you can claim will depend on the cost of the vehicle and whether it meets the qualifying criteria. It's advisable that you seek advice from a tax professional or an accountant to understand the exact tax implications of your purchase and how to claim the first-year allowance.

Additionally, you can always visit our Reports and Accounting articles for ideas on managing your account and other related tasks.

If you have any additional concerns besides your first-year allowance, please don't hesitate to post them here in the community. Stay safe!