Claiming 'flat-rate' milage allowance when SE?

billymadbiker

Hi,
I am self-employed,
I have 1 van that I use 100% for work.
Currently I claim all (100%) of my fuel/running costs on me SA return.
I also claim CA.
I cover around 25k miles p/a.

If I claimed at the standard rate .45p/10k+.25p/15k) it would come to £8250.

My actuall runnnig costs for the last year were £5200.
As the WDA was only £800 last year my capital allowance claim for this year will only be £144.

Are there any reasons I should not just claim at the 'flat--rate' allowance?

As I only use the van for work do I need to keep any records of milage or could I just read the clock on the first and last day of my accounting period? If I need proof would the milage on the annual mot be enough?

anselld

You can't change the method of claiming until you change the vehicle.
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
"If you’ve already claimed capital allowances for a vehicle you can’t use the mileage rate for it."

zygurat789

anselld wrote: »

You can't change the method of claiming until you change the vehicle.
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
"If you’ve already claimed capital allowances for a vehicle you can’t use the mileage rate for it."

You would, of course, have to sell the van, from your business to yourself. This would take it out of your capital allowances calculation.
If you are VAT registered then VAT will be payable by you to your business and from the business to HMRC.
Voila a change.

billymadbiker

I am not vat registered.
As the WDA of the van currently stands at £800 (which is actually about the same as the market value) then would simply selling it to myself be a reasonable idea?
Or would this not count as a change of vehicle?

anselld

billymadbiker wrote: »

I am not vat registered.
As the WDA of the van currently stands at £800 (which is actually about the same as the market value) then would simply selling it to myself be a reasonable idea?
Or would this not count as a change of vehicle?

I understand zygurat's point, but I am not convinced the TaxMan would buy it.

purdyoaten

anselld wrote: »

I understand zygurat's point, but I am not convinced the TaxMan would buy it.

I would agree - capital allowances have already been claimed previously on that vehicle.

zygurat789

purdyoaten wrote: »

I would agree - capital allowances have already been claimed previously on that vehicle.

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/MANUALS/BIMMANUAL/BIM47701.htm

When a vehicle is "REPLACED"

anselld

zygurat789 wrote: »

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/MANUALS/BIMMANUAL/BIM47701.htm

When a vehicle is "REPLACED"

In the OP case the vehicle isn't being replaced though is it.

Dave_the_Ginger_Cat

Replace your £800 van with another similar £800 van. Or use the tax savings to buy a better one!

zygurat789

anselld wrote: »

In the OP case the vehicle isn't being replaced though is it.

I'm glad you understand.