mileage scheme / receipts method

deejaybee

Hi

Asking this on behalf of a friend who is S/E.

He is currently accounts for vehicle related costs via receipts, but wants to know if he can swap to the mileage ( 45ppm) scheme ?

I was under impression that whichever scheme you start using, you then have to continue with that, but he thinks it might be possible to change when you change vehicle or at the start of a new tax year ?

Advice appreciated, thanks

Pennywise

You can change when you change your vehicle

densol_2

deejaybee wrote: »

Hi

Asking this on behalf of a friend who is S/E.

He is currently accounts for vehicle related costs via receipts, but wants to know if he can swap to the mileage ( 45ppm) scheme ?

I was under impression that whichever scheme you start using, you then have to continue with that, but he thinks it might be possible to change when you change vehicle or at the start of a new tax year ?

Advice appreciated, thanks

Once started the method must continue for that vehicle. When a new vehicle is purchased then you can change methods as long as you are not running a cash basis accounts system as that requires the simplified method of 45p I beieve. Key is the amount of miles undertaken v the value of vehicle, CC emissions, cost of insurance, tax, servicing etc and the % of business / private use. Calculate the costs both ways and see which way is best.

deejaybee

Thanks both, will pass on the message.