Car costs

*sas*

I'm currently doing my partner's accounts and tax return. He runs a small cash only music business. In the past I have declared 30% of the car running costs as a business expense however this year he has bought another car, old banger £1200 Though we know anything that can be claimed will be small it all helps! I haven't a clue what the rules are regarding how much of the car cost can be declared or how to work it out can anyone advise me please? The hmrc website may as well be written in another language!!

Savvy_Sue

Is the banger exclusively used for business?

[Deleted User]

If you have difficulty in understanding the concept why not just claim the 45p on the first 10000 miles and 25p thereafter and avoid the hassle?

What is his business mileage?

*sas*

We've always put down 30% running costs mot services etc rather than working out the exact milage. He's a musician so uses it for running about to gigs a few days a week then personal use the rest of the time. Not sure the exact business mileage

Pennywise

*sas* wrote: »

Not sure the exact business mileage

So you need to make an estimate based on his typical/usual travelling. Whether you use the mileage rate or a percentage of total costs, you need to know the business mileage to do either. A tax inspector wouldn't allow your guess of 30% without some kind of logic or mileage record to support it.

Darksparkle

Mileage records are very easy to keep. Mileage at start to travel, mileage at the end of travel and the reason for the travel.

kidmugsy

Darksparkle wrote: »

Mileage records are very easy to keep. Mileage at start to travel, mileage at the end of travel and the reason for the travel.

But he's a musician. An artist.

*sas*

The issue is I don't know how much of the value of the car purchase I'm allowed to declare? Can I put it all the first year or do I have to break it down year by year? Presumably either way still working on a percentage basis

Darksparkle

kidmugsy wrote: »

But he's a musician. An artist.

Not seeing your point?

*sas*

I think they're trying to point out that an artist wouldn't be capable of understanding their mileage, all very helpful.
It isn't even the mileage I'm stuck on but the rules regarding depreciation on the value of the car

booksurr

read this
https://www.gov.uk/capital-allowances/business-cars
post your calculations on here and someone will tell you if you got it right