I am looking at a self employed return, and he has a lot of expenses for vehicle fuel. I know he has a large pickup truck for his business (he is a carpenter and uses it to pick up supplies/wood and deliver goods in a certain distance). However, he will use a certain % for his commute from home to his workshop.
I understand that commuting between home & place of work is not an allowable expense, should I just get the client to disclose a % of vehicle use for commuting and private (he did say that personal use i.e. not work related is very minimal).
I know there is a bit of a question as to where the "place of work" actually defined, he sells goods on ebay and via his webpage, so all the selling/business side would be done at his home address, but the physical "making" is at a workshop. All purchase invoices are addressed his home, and there is probably 50/50 split of delivery to workshop/home.
Any help is appreciated
Thanks
Lyndsey
BTW I am just back at work from maternity leave, so I am a bit rusty :)
-- Edited by Lyndsey on Thursday 8th of May 2014 02:07:06 PM
All depends whether the vehicle is classified as a van as to whether the commute to work is allowable.
You need to look at the HMRC tables as to whether the vehicle is a van (not always as straight forwards as it sounds).
Think that we've done this on the site before, vaguelly remember chatting with Bill (Wella) on this issue so after posting this I'll just have a quick dig to see if I can find a link for you.
kind regards,
Shaun.
__________________
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.
Just use them as a start point though and take a look at those links accross to Aweb.
HTH,
Shaun.
__________________
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.
Hi Shaun, Lyndsey says this is for a self employed guy so those links won't apply.
Lyndsey, I think you need to get him to identify the mileage incurred. I would think the workshop would be classified as his business base and therefore travel there from home and back would be ordinary commuting and therefore not allowable. Picking up materials, delivering work, going to clients to quote etc would be fine to allow though.
It is a double cab, and they payload is over 1t. So for capital expenses/VAT it is treated as a van not a car. But I am struggling to find a definite answer regarding allowable expenses. All I can find is
Allowed - Car and van insurance, repairs, servicing, fuel, parking, hire charges, vehicle licence fees, AA/RAC membership; train, bus, air and taxi fares; hotel room costs and meals on overnight
business trips.
Not allowed - Non-business motoring costs (private use proportions); fines; costs of buying vehicles; travel costs between home and business; other meals.
Maternity leave was great, but I have to earn some money now! Difficult with 2 little ones at home though! But eldest is starting pre-school in September so hoping I will have more time to work.
It is a bit difficult to provide mileage after the end of year, they should really keep records of each trip to do that, or could he use an estimated figure?
I have just read on his motor insurance policy that he is not covered for commercial purposes, so I am going to recommend not to claim any motoring expenses at all.
