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Post Info TOPIC: Car expenses
Lisa68


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Car expenses
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Morning everyone,

I have a client and i'm doing his tax return, he has included a bill for repairs made to his car, he'd like to claim some if not all of this cost back,  is there a percentage of this cost that can be claimed as an expense, the client isn't VAT registered. He paid for the repairs out of his personal bank acccount as he doesn't have a seperate business account.

Many thanks.



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nautica


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Hi Lisa

 

It depends is this car part of the business ie has it been logged as an asset and used solely for the business   with no private uses  then he could claim all of it as an expense and as he has paid from his personal account i would  CR his capital account  and dr repairs

But if it is his private car then he would claim the 45p per mile and this is to allow for repairs and so on  

I think i am right on this

 

 

However if he has done a deal with the tax offices  to ues a % then its just a matter of him deciding  how much was business and how much for private

so it could work like this  60% business and 40% private so the claim would be 60% of the cost



-- Edited by nautica on Sunday 22nd of May 2011 10:10:38 AM

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Wella


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Morning Lisa

It should be OK to claim the repairs as an expense against the self employed profit but you will have to appoition any private use.

I assume this is the same client as your last post, so what ever Business use:Private use ratio you used for that, do the same for the repair expense

HTH

Bill



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Lisa68


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Hi Bill & Nautica

Yes this is the same client, its my first return hense the questions biggrin

The car is used for both private and personal. I did think it was proportion but just wanted to make sure.

Thank you for your help.



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