Sole trader self assessment - vehicle finance

mcplumb

Is the interest charged on vehicle finance tax deductible ? 

This a van with <5% personal use

Jeremy535897

Do you use the cash basis? Do you claim mileage or actual costs?

mcplumb

I file on invoice date rather than cash received date. Accrual? 

mcplumb

No mileage just actual costs

Jeremy535897

You will be able to claim 95% (or whatever the correct figure is) of any costs relating to the van, including service, MoT and repairs, recovery, insurance, road fund licence, fuel, and finance costs. You should also have claimed the same percentage of the cost of the van when you bought it, as capital allowances. If you are registered for VAT you can reclaim the same percentage of the VAT charged on all of the above, although you can claim 100% of the VAT on repairs.