Capital Allowance on new van

pmorrison_2

Hi,

I run a small business and claim the standard 40p per mile against my tax bill rather than separate running costs for my van. I am about to purchase a new van and was wondering if I can claim capital allowance for the van as well as the standard 40p per mile, or whether I am only allowed to use the standard rate OR the value of the van and running costs?

Many thanks for your time

Elaine_Wilson

I thought the 40p per mile concession was only meant to apply to cars.

But in any case the 40p is fixed to cover the capital cost as well as the running costs so no additional allowances can be claimed.

pmorrison_2

I was told by an accountant that it applied for vans as well, I assume that it does as Ive done so in my last two tax returns!

Pennywise

pmorrison wrote: »

I was told by an accountant that it applied for vans as well, I assume that it does as Ive done so in my last two tax returns!

Was it your accountant who told you, i.e. the person who does your tax returns?

For a van you should be claiming the actual costs, not a mileage rate - you'd probably be better off than claiming a mileage rate anyway.

Why do you think that HMRC have accepted your 40p per miel claim for the last two years? Do they actually know that's how you claimed for your van? Have they opened an enquiry. Just because you've heard nothing from them (other than their standard acknowledgement and tax bill) doesn't mean that they're agreeing your figures!

pmorrison_2

Ive not had an enquiry so they obviously dont know how Ive made my calculations, Im fairly sure the two amounts were pretty much the same for each option so hopefully if it is ever pulled up I wont be much out. So Im guessing that for the tax year 08/09 I should be claiming the actual costs?

I fill in my tax returns myself but was told by an accountant friend of mine that I would be better off using the mileage rate. Should I say anything to HMRC or am I best off leaving it?

jimmo

You can definitely use the mileage rate basis for vans.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47702.htm

thebaldwindowfitter

if you do it on capital allowances you claim 25% of the van per year so if the van is 10k you claim 2.5k next year your van on your books is worth 7.5k .you get the 25% till the van is worth nothing you can claim all petrol insurance and every expense for the van .im sure its better this way