Advice please re car use for business

Myddlemarch

Sorry, couldn't think of a better title!

I'm trying to become self-employed as a home-help. A friend has asked if I would visit her mother and take her shopping as part of my service.

I wondered if I would need a special driving licence and extra insurance for this?

Thanks for any advice.

googler

Once you start using your car for business purposes, you need to tell your insurer, if you haven't done so already. You're no longer using your car for Social, Domestic & Pleasure, as the insurers put it.

As far as I know, you don't need any amendment to your driving licence.

Florasaurus

I think you just need to change the insurance as Googler said, but that shouldn't cost much extra, if any.

Another thing to keep in mind is that you can put the mileage down as an expense (I think it's ~19p per mile) which will reduce reduce the profit, which reduces the tax you pay

If you printed your business name on your car, you could charge all your mileage as an expense, I think, cos it's advertising. Don't quote me on this though!!

googler

Florasaurus wrote: »

I think you just need to change the insurance as Googler said, but that shouldn't cost much extra, if any.

I wouldn't bet on that. I think there'll be a big jump when the insurer learns that the OP is ferrying customer(s) around from point to point.

Based on conversations with my broker, I was quizzed as to the nature of business use - was I carrying samples, was I visiting clients, was I merely travelling from location to location within the business, etc., and I was left with the impression the premium varied according to the category of risk. I'd suggest that carrying clients around is in the high-risk category.

I'd also suggest the OP might be able to mitigate this increase by taking other courses of action that will reduce the premium - taking advanced driving courses, membership of Institute of Advanced Motorists, etc etc.

Nebulous2

care jobs don't usually create a big increase in premium. Most of the travelling is often to and from people, rather than actually carrying people.

I don't know where you are at, but depending on the services you offer, then you might have to register as a care service.

Florasaurus

googler wrote: »

I wouldn't bet on that. I think there'll be a big jump when the insurer learns that the OP is ferrying customer(s) around from point to point.

Did they say anything about taking customers places? I was under the impression that it would just be errands, like shopping, not actual people

imoneyop

Florasaurus wrote: »

Did they say anything about taking customers places? I was under the impression that it would just be errands, like shopping, not actual people

From the OP

Myddlemarch wrote: »

A friend has asked if I would visit her mother and take her shopping as part of my service.

googler

Florasaurus wrote: »

Did they say anything about taking customers places? I was under the impression that it would just be errands, like shopping, not actual people

From the OP

Myddlemarch wrote: »

A friend has asked if I would visit her mother and take her shopping as part of my service.

Take her, not take the shopping.

Prothet_of_Doom

Florasaurus wrote: »

I think you just need to change the insurance as Googler said, but that shouldn't cost much extra, if any.

Another thing to keep in mind is that you can put the mileage down as an expense (I think it's ~19p per mile) which will reduce reduce the profit, which reduces the tax you pay

If you printed your business name on your car, you could charge all your mileage as an expense, I think, cos it's advertising. Don't quote me on this though!!

Class one business use? I'd be asking my insurer to clarify exactly what is possible, and what isn't.

If you use a car for business, then you deduct 45p a mile as a buiness cost (after 10K it's 25p a mile). You'd need to do this via a self assessment