I have a client who's a sole trader and who has several vehicles on the go. I'm just not sure what I should be putting through the books and wondered if anyone could point me in the right direction on any of it!
He has at least one car which he normally uses, and for which I generally get all the expenses. He won't record any mileage, though, so I've just been recording everything I get, and have indicated clearly that it's a mixture of personal and business, for the accountant to sort out.
He then has a van of some description which is used primarily by his employees and at least one subcontractor. I think this is mostly, if not exclusively, business use, but I don't have a lot of info to go on. I have been recording this expenditure as above.
Then there are various other vehicles which may or may not belong to him. I have already outlawed one vehicle which either belongs to or is primarily used by his daughter, who isn't on the payroll. He has also bought another car, which he and/or the employees use for business, and there is possibly use of other family members' cars. He just seems to like accumulating vehicles, and gives no thought to how they're used.
Basically, I just want to get clear in my mind whether or not he can claim expenses for more than one vehicle, and whether I should actually be advising him to stop him doing any of this.
If anyone wants me, I'll be lying down in a darkened room :)
I would go with the approach of allowing the van and pick a car, any car, but you only get one and you don't even get that unless there's a milage log (I would also be trying to get them onto mileage rather than expensing the cars through the business as invariably business owners are better off with mileage rates).
Right, now in you darkened room imagine a lightly bubbling brook. Can you see it?
Now imagine holding your clients head under the water. Let him up for a second then down again.
There, bet you feel better already
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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.
