I have a sole trader client who uses their car for around 30% business travel. Are there any additional expenses I can include in their allowable expenses ? Eg cost of the car, depreciation. Also her partner uses the car for his business at times, whilst she is the owner. What would be the optimum way of them claiming allowable expenses regards the use of this car for business ?
Hi Lorraine, you can claim for the cost of the car, insurance, repairs and fuel, but only at 30%, as 70% will need to be disallowed for personal use. A better alternative may be to claim mileage at 45p a mile, which covers all these expenses but they would need to keep a record of all business mileage. If they've already been claiming expenses then they can't switch to the mileage option until they change the car.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Just to add to this - in the event of a HMRC inspection, they are likely to check MOT records to check mileage from one year to another to ensure you are arent claiming too much.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If the car was bought a while ago, and is completely paid for, can I still include 30 % of its cost as travel expenses in a tax year ? The cost of the car has not been included to date in a tax return.
