Claiming 45ppm for a car when I have a van?
daddy_bro
Posts: 42 Forumite
Hi guys
Here is one for the accountants out there.
I started up as a sole trader in July and bought a Transit van for doing deliveries and carrying tools etc. I bought the van 2nd hand for £6k and plan to enter the purchase cost of it, diesel and running costs as separate expenses. I worked out that over two years this would be about the same as claiming for simplified expenses i.e. at 45p for the first 10k miles and 25p thereafter.
I now find that many of the journeys I do could be done in a car which would use much less diesel and so be cheaper to run. I still need the van for some of my work but would like to use the car most of the time.
If I use my own car can I claim simplified expenses for it, and continue claiming for the van expenses separately?
Many thanks in advance
Here is one for the accountants out there.
I started up as a sole trader in July and bought a Transit van for doing deliveries and carrying tools etc. I bought the van 2nd hand for £6k and plan to enter the purchase cost of it, diesel and running costs as separate expenses. I worked out that over two years this would be about the same as claiming for simplified expenses i.e. at 45p for the first 10k miles and 25p thereafter.
I now find that many of the journeys I do could be done in a car which would use much less diesel and so be cheaper to run. I still need the van for some of my work but would like to use the car most of the time.
If I use my own car can I claim simplified expenses for it, and continue claiming for the van expenses separately?
Many thanks in advance
0
Comments
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If I use my own car can I claim simplified expenses for it, and continue claiming for the van expenses separately?
Yes that's fine. Just remember that you have to pro-rata your van costs and disallow private use, so the amount of van purchase and running costs you can claim will inevitably fall if you do less business mileage in it. I.e. if you currently do 90%/10%, you can claim 90% of the costs, but if by using your car more, it goes to 50/50% for the van, you can only claim 50% of the costs. Only if you never use the van for anything other than business will there not be a reduction in the percentage claimed (Hard to justify to HMRC if you have a van but barely use it!).0 -
Thanks for your reply Pennywise.
As 99.9% of miles I do in the van are for business purposes I will try claiming for all mileage and running costs for it. I keep a record of the miles travelled and all receipts for diesel so I should be able to justify this if the tax man queries it. I'll also check with my accountant though to make sure so your reply was very helpful.0 -
As you are recording the business use then I would use the actual percentage as compared to the total mileage covered. Don't guess it's 99.9% as you can work out and provide evidence for the actual amount.Thanks for your reply Pennywise.
As 99.9% of miles I do in the van are for business purposes I will try claiming for all mileage and running costs for it. I keep a record of the miles travelled and all receipts for diesel so I should be able to justify this if the tax man queries it. I'll also check with my accountant though to make sure so your reply was very helpful.
Well done for being diligent in recording the actual miles covered. Lots of people try to estimate it months later from invoices of where they have worked - I'm sure in most cases they miss out on expenses they could have claimed.0 -
As you are recording the business use then I would use the actual percentage as compared to the total mileage covered. Don't guess it's 99.9% as you can work out and provide evidence for the actual amount.
Well done for being diligent in recording the actual miles covered. Lots of people try to estimate it months later from invoices of where they have worked - I'm sure in most cases they miss out on expenses they could have claimed.
Since I have only used the van for personal use 3 or 4 times this year I can easily work out the miles travelled.
Thanks for the advice.0 -
Remember to advise your insurance company for change of use , even for the small times you are going to be using it.0
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