Just want to make 100% sure before I go back to my client.
I have a client who uses his vehicle partially for business. I looked at his vehicle insurance and he is only covered for domestic & commuting, with no mention of commercial use at all. I said that it would be difficult to claim for fuel/vehicle costs if he is not telling his insurers that he is using it for commercial use.
I have asked going forward if he wants to claim vehicle expenses he must ensure that commercial use is on his insurance policy, and to keep a log of every journey used for business.
He keeps asking questions as his fuel/car expense from his receipts exceed £4,000, which I am unsure are all business.
Although I would accept that having the insurance properly in place is best practice both from having proper cover and for firming up the claim for business mileage with HMRC I would say if there was legitimate use of the vehicle for business then I would accept the motoring expenses, but he should have a log book to 'prove' the mileage. If you suspect the claim is high it may well be, so tell him you are playing devils advocate and ask him for the proof. Then you have a choice as to whether to claim a proportion of all business expenses or claim mileage at 45p/mile (first 10,000 miles)
