Just started a new business

firefirstuk

Hi;
I just started a new business, however I'm using my own car to do all the running around. Am I best buying a vehicle through my business? Am I best paying for the petrol through my business? so many questions; does anyone know of a good website where I can get some information. Thanks

jonesMUFCforever

Business mileage should be charged to the business as an expense as should the proportion of running costs etc.

May I suggest what you need is a good accountant.

johncmcloy

businesslink.gov.uk has some useful advice if you're just a sole trader with basic book-keeping needs, e.g. low volume of transactions relatively low value. There are numbers/advisors online there for your to talk through your concerns with. Make sure you get VAT receipts for your fuel and save them all, as well as all invoices related to maintenance/repairs for the car, and keep records of your appointments and mileage related to them (make sure you ask the mechanic if this is a VAT invoice). Also I think if your turnover is over 60k you will have to register for VAT but not certain of that figure.

Crabman

Hi firefirstuk, welcome to MSE :hello:

I've moved this thread to the Small Biz Board

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

fengirl_2

Only buy a new car if you really need one.
As you and the business are one and the same, you must include in your accounts all the running cost of the vehicle and add back the private use on your tax return. You will also claim capital allowances on the value of the car on your return. You can introduce a car into the business which is already owned - you would use the value at its first use.

spilly1

DONT put your car into the business - it's not a good idea tax-wise. Instead, log your business mileage (keep a notebook in the car), and pay yourself at the HMRC rate of 40p per mile for the first 10,000 miles and then at 25p for any further miles in each tax year (starts at 6th Aopril eacj year). Do keep your fule receipts though as you can reclaim back some VAT if you are registered.

Airwolf1

I got told if one goes VAT registered, your mileage claim as an expense is based on the percentage of work mileage compared to overall mileage. (advised by HMRC).