Tax matters

[m4tty]

Hi,

Ive just been on a business start up course through the princes trust and learned some interesting stuff about Inland Revenue and wantd to ask a few questions for clarification.

I know people do this different ways but when youve got a company vehicle (van) you can either claim 40p per mile & 50% tax, MOT & Insurance or you can claim for petrol, mot, insurance, tax & other costs.

1) is ^^^^ correct?

2) surely the 40p per mile would work out better as say you did 10k miles per year that would be

 

[Evans Electric]

My van is used 100% for business so I claim 100% of diesel ,road tax, insurance, MOT, repairs , parts, VAT, etc.

Do you have a second vehicle M4tty ?

 

[m4tty]

I have got a family calibra worth about

 

[septiclecky]

I don't work for myself but can claim for travel from my company when I go on course's etc at 40p a mile, after claiming a certain amount (think it is

 

[septiclecky]

I have got a family calibra worth about

 

[danny7299]

i have " Customers " shhh (honest i do) come to my house , so the window cleaner bill goes in, milk and coffee, and cleaners bill ...

 

[Evans Electric]

All depends on whether you keep a private car then . If you only have the van the taxman will assume there is private usage .

Are you sure about not having an accountant ? If you write up your own books and have all your bills and invoices in presentable order ( not all dumped in a cardboard box) an accountant should cost

 

[ProDave]

I have always just charged millage at 40p per mile and then paid all the bills myself. Apart from anything else, it's so simple, you just record your business miles and work it out.

But are you saying as well as charging 40p per mile, you can also claim 50% of your road fund licence, and MOT cost? and does that MOT cost include any necessary repairs?

 

[Evans Electric]

Hi, ProDave, I think it works something like this.

If you have a private car, all van costs are set against tax, incld. MOT,parts,fuel,road tax, insurance. Private car is ignored.

If you only have a van they will deduct a percentage for private use.

If you only have an estate car they have a calc. for business/private .

Deke

 

[ProDave]

Hi, ProDave, I think it works something like this.If you have a private car, all van costs are set against tax, incld. MOT,parts,fuel,road tax, insurance. Private car is ignored.

If you only have a van they will deduct a percentage for private use.

If you only have an estate car they have a calc. for business/private .

Deke

I only have the one vehicle that's used for private and business, so I pay all the costs. I always understood that I then just claim 40p per mile from the business for business usage.

But the OP suggests I can also claim 50% of the road tax and MOT. I'm just asking is that correct or not?

 

[spinlondon]

If you use your private vehicle for work use, you can claim 40p a mile for the first 10,000 miles, then 24/25p a mile there after.

This covers petrol maintenance etc.

This milage allowance was brought in for employees using their own cars, but has been extended to cover sole traders.

If you buy a company vehicle, you can claim 40% of the purchace price the first year, and there after 25% of what's left untill you dispose of it.

You can claim 100% of running costs, MOT, Tax and insurance etc.

If you lease a vehicle, you can claim 100% of all costs.

 

[m4tty]

I have always just charged millage at 40p per mile and then paid all the bills myself. Apart from anything else, it's so simple, you just record your business miles and work it out.But are you saying as well as charging 40p per mile, you can also claim 50% of your road fund licence, and MOT cost? and does that MOT cost include any necessary repairs?

I looked back through the notes I made from the princes trust course and ive writen down 40p for 1st 10,000 miles & 50% MOT, Tax & Insurance but I am meeting the person running the course on wednesday so will ask her again and post here

Cheers

 

[Evans Electric]

I only have the one vehicle that's used for private and business, so I pay all the costs. I always understood that I then just claim 40p per mile from the business for business usage.But the OP suggests I can also claim 50% of the road tax and MOT. I'm just asking is that correct or not?

I'm not sure Dave, but it sounds right , you'll find out shortly, someone will know the facts.

Deke

 

[paul b b]

i know a guy who is a mobile machanic, his van is racked out and he carries loads of tools as you would expect, he also has a car for personal use.

during a tax inspection he let slip that in the morning he stops to get a paper, the tax man sid this is personal use and made him pay back 10% of 6 ys bills.

ps. if you get a good accountant he will tell you what is the best thing to do, add up the bills for car useage then clock up miles and calculate, stick through the best option.

you will pay about 150-200 a year for a good accountant and, if his is good, will save you double that in tax!