Please help..Still unclear about 40p fuel allowance

Dave80s

I am a sole trader, the business owns the car. Yes, the 25% was for capital allowances.

All I need to know is, if I buy a van for £12,000 solely for business use, can I write down 25% = £3000 and then claim 40p per mile.

videoking

you carnt claim both 1 or the other

MrsE_2

Dave80s wrote: »

I am a sole trader, the business owns the car. Yes, the 25% was for capital allowances.

All I need to know is, if I buy a van for £12,000 solely for business use, can I write down 25% = £3000 and then claim 40p per mile.

If you claim capital allowances, you can also claim the other running costs BUT NOT THE 40P PER MILE.
You can claim for fuel, mots, servicing, ect.

Debt_Free_Chick

Dave80s wrote: »

I am a sole trader, the business owns the car. Yes, the 25% was for capital allowances.

All I need to know is, if I buy a van for £12,000 solely for business use, can I write down 25% = £3000 and then claim 40p per mile.

These are two different tax allowances. The capital allowance is to reflect depreciation. Assuming you show depreciation in the business accounts, the amount there is "disallowed" in your SA Tax Return. Instead you claim capital allowances - yes at 25% of the brought forward pool. So, in year one, you claim 25% of £12,000. The balance is the pool to carry forwards. Assuming no other purchases to add to (or sales to deduct from) the pool, the b/f pool is £9,000 so the following year you claim 25% of that and carry forward £6,750. In practice, the pool would be adjusted for purchases and sales.

The running costs are completely separate - you claim the actual running costs of the vehicle including tax, MOT, maintenance/service, oil, fuel etc.

The 40p per mile is an "all inclusive" allowance designed to cover running costs AND depreciation. As you are claiming depreciation via capital allowances you can not have it again by claiming the 40p allowance too. But you can claim for running costs in addition to the capital allowance.

Dave80s

Ok, understood, thanks to all.

heatherbelle_3

I'm claiming my 40p a mile - where on the form do I put it? under 'car, van and travel expenses?'

It just does obviously mention the mileage claim in the notes here