I have recently set up a bookkeeping business and am thinking about whether to claim the mileage allowance or put my car through the business. The problem I have is that the car is registered under my husband's name and insured in his name with me an additional driver. Will I have to transfer it over to my name?
To keep things simple, I would go for claiming for the use, as the car is not in your name. Would it be a advantage to change the ownership? It would depend on how much you are going to use the car, whether the insurance charge would be any different. You could then enter all motoring expenses and disallow a % on your SA. But I don't think for you that would be the best route.
I agree with Phillip.... That's happening way too often at the moment so we'll have to get back to the VAT debate from Harps other thread! I think that I'm being a bit more pragmatic than purist on that one.
But meanwhile, back to this thread.
It's 40p per mile for the first 10k miles and 25p per mile thereafter. So long as you don't go beyond these prescribed rates it's a non P11D expense.
You must keep a log of every mile traveled on business so good idea to keep a little A6 notebook in the car so nothing gets missed.
I total the miles then reimburse myself at the end of each month.
If you go down the other route your still going to have to divide costs between business and private use (and justify business use) and it seems a whole lot more stress for very little gain.
Probably best to plug the expected figures for both options into Excel and see what's best for you but personally I would definitely go for the mileage allowance route.
Have a good one,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I'd go mileage allowance route too. I'm useless at writing down start and end mileages so I write down where I'm going then put the journey into a route finder and use the mileage it comes up with.
I will go down the mileage route as after looking into the increased car insurance premium for me to be the main policyholder, it wouldn't be worth writing the car into my books.
