I have a client who was a sole trader and claimed all his van expenses . He has now formed a limited company with 2 others but he doesn't want to bring his van into the company but will use it for business for the company. What's the best way to treat this?
You need to do the calculations specific to the client taking into account annual mileage, likely repairs, etc. But generally 45p per mile for the first 10k and 25p per mile thereafter effectively treating the van as a car works out more advantageous.
They must however appreciate that it is themselves personally that have responsibility for maintenance and upkeep. The only expenses that the company would pay are tolls and parking charges.
Good luck with the client. I always find those that were self employed and become limited the most problematic as they just cannot shake the idea that the money in the business belongs to the business, not to them.
All the best,
Shaun.
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Shaun
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