Self Employed Painter and Decorator vehicle expenses

xxxxxxxx

Hi, 
I was talking to someone who is as described, they have one car in the family and they use the car to go to work in. He says his accountant tells him he can claim petrol expenses but not his other car costs e.g. repairs, wear and tear etc. 

This sounds incorrect to me.  I would say he has to determine the use of the car into family and work, i.e. 20% family and 80% work.  

He carries his paint and brushes in the car. 

I would say he needs commercial use cover on his insurance. 
and he can claim 80% of all car expenses, such as Road Tax, wear and tear i.e. tyres and MOT and any and all repair work.  80% of his insurance. 

I cannot understand why an accountant would tell him he can only claim the petrol he uses for work? 

[Deleted User]

Most of what you have said is correct apart from ‘wear and tear’ which is a separate claim altogether - capital allowances. 

Of course it may be beneficial for him to forego all of these motor expenses and claim a fixed mileage rate instead - 45p per mile for first 10000 and 25p thereafter. No need for any motoring receipts - just mileage records. 

xxxxxxxx

Thank you for reply.
Sorry I see what you mean, I did not mean "wear and tear" as in yearly depreciation of value as you say that comes under capital outlay if they want to claim for it. I mean things like cost of tyre replacements. 

So the mileage thing is an either or scenario, mileage rate OR individual receipts? And the accountant has probably said you would be better off with the mileage rate and him saying the accountant says "I can claim only petrol" could be a misunderstanding that it is not the petrol being claimed it is the mileage?

Is the mileage thing new since 2005? It's just my accountant before 2005 was asking me for all my receipts.

[Deleted User]

It is ‘either or’. Perhaps it was more beneficial for you to visit actual costs 18 years ago?

jimmo

purdyoaten2 said:

It is ‘either or’. Perhaps it was more beneficial for you to visit actual costs 18 years ago?

Apparently it was 2013 when the choice came in. Before that the self employed had no choice.
BIM75005 - Simplified expenses: expenditure on motor vehicles - HMRC internal manual - GOV.UK (www.gov.uk)

GrumpyDil

xxxxxxxx said:

I would say he needs commercial use cover on his insurance.

Does he actually have business use on his insurance?