Am wondering what your opinion is on the new HMRC 'cash basis' scheme which is supposedly supposed to be making things simple and easier!
I'm getting in such a muddle, I've read all the HMRC help notes about what can and can't be included if choosing the new cash basis but I've now got brain ache and can't think straight.
My client is a driving instructor - therefore his car is deemed as machinery. However from what I've read if we/he chooses to use cash basis and uses the flat rate for mileage then he can't use the Capital allowances writing down method for the purchase of his new car made in that year?
I deemed the flat rate mileage rates to be a simple way of flat rating insurance costs, parking, fuel etc and not the actual purchase of the vehicle.
I deem flat rate mileage rates as full compensation for the use of one's own vehicle.
I would not regard parking charges when on business to be part of the flat cost.
For a driving instructor I would have thought it beneficial for the vehicle to be plant (the vehicle is specifically modified for a purpose) and not to use the flat rate.
Just my opinion. I do not have any driving instructors.
If he's around Kris has a focus on that market and would be one of the best people to advise about any specific considerations.
kind regards,
Shaun.
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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.
