A friend has asked me (as a bookkeeper) if she can claim an essential repair to her care as a business expense. She is a beautician and needs the car to visit clients and to get to her salon. I said yes but her boyfriend says no. Which of us is correct?
It will depend on how she has claimed motoring expenses on the vehicle in the past.
If she is claiming a mileage allowance on the vehicle then no but is she opted for actual costs split Business: Private use, then she could claim a percentage.
If she claims for motoring expenses then she can claim all the running costs (i.e. petrol, tax, insurance and repairs) of the vehicle plus a capital allowance on the cost of the car.
However, she will need to deduct a proportion, from both of these items, for the private use of the vehicle which should be determined by keeping a mileage record of business and private use.
As stated above, your friend has the option of claiming mileage allowance instead.
However, once she has chosen her option she cannot change it until she changes vehicles.
-- Edited by Truemanbrown on Saturday 15th of October 2011 01:01:51 AM
