Business use of vehicle.

Mini_P

I am currently employed. I also have a small self-employed business on the side (I do declare).

I have one motor vehicle that I use for both personal use and business use.

When I use my vehicle for business use, for approximately 100 days a year, I use the mileage rate to calculate my expenses in respect of my self-assessment tax return. I fully understand that I cannot claim business miles if my journey has a personal element to it as the journey must wholly be for business use.

Anyway, I am currently in negotiations with a company who wishes to place advertising on my vehicle. This will therefore produce an income everytime I use my vehicle (whether it be for personal or business use). Therefore, my question is if the vehicle I am using is producing income for me when I use it, will every journey become business use?

mikey72

Mini_P wrote: »

I am currently employed. I also have a small self-employed business on the side (I do declare).

I have one motor vehicle that I use for both personal use and business use.

When I use my vehicle for business use, for approximately 100 days a year, I use the mileage rate to calculate my expenses in respect of my self-assessment tax return. I fully understand that I cannot claim business miles if my journey has a personal element to it as the journey must wholly be for business use.

Anyway, I am currently in negotiations with a company who wishes to place advertising on my vehicle. This will therefore produce an income everytime I use my vehicle (whether it be for personal or business use). Therefore, my question is if the vehicle I am using is producing income for me when I use it, will every journey become business use?

You'll never convince the tax man of it.

Deepmistrust

Mini_P wrote: »

I am currently employed. I also have a small self-employed business on the side (I do declare).

I have one motor vehicle that I use for both personal use and business use.

When I use my vehicle for business use, for approximately 100 days a year, I use the mileage rate to calculate my expenses in respect of my self-assessment tax return. I fully understand that I cannot claim business miles if my journey has a personal element to it as the journey must wholly be for business use.

Anyway, I am currently in negotiations with a company who wishes to place advertising on my vehicle. This will therefore produce an income everytime I use my vehicle (whether it be for personal or business use). Therefore, my question is if the vehicle I am using is producing income for me when I use it, will every journey become business use?

Hahaha, nice try lol.:rotfl:

patman99

The question does have implications for people who may wish to make a few quid by allowing local/national businesses to advertise on the side of their vehicle.

schneckster

Afraid not.

Business use of a car means going somewhere on business or coming back. Adverts on your car mean you are selling advertising space, i.e., a service. The taxman would see it as the 2 different things they are, especially if you're invoicing the company using you for those adverts.

I wouldn't even try it. You'll get caned for it if they ever twig.

Schneckster

Horace

I use my own car for personal trips and business ones and have a business element on my fully comprehensive insurance. I keep a little notebook in the car along with a pen which I use to note down the mileage for particular trips - I note down the date, where I am going, who I am going to see and the mileage. Thankfully I have two trip meters in the car as well so that I can set one to zero when I am about to set off from home on a business trip.