what % of car insurance, road tax can I claim as business expense?
02 April 2003, 08:45 PM
#1
Scooby Regular
Thread Starter
Join Date: Jun 2000
Location: Runcorn, NW England.
Posts: 1,562
Likes: 0
Received 0 Likes
on
0 Posts
Hi,
I run MRO Scooby Styling as a sole trader, so use my car as a demo, development car, and as transport to pick up materials etc. Can anyone help me with the above question? Do I need to prove how much I use it for business related activities? Any help would be great!
Thanks, Rob.
I run MRO Scooby Styling as a sole trader, so use my car as a demo, development car, and as transport to pick up materials etc. Can anyone help me with the above question? Do I need to prove how much I use it for business related activities? Any help would be great!
Thanks, Rob.
02 April 2003, 08:53 PM
#2
Scooby Regular
Join Date: Sep 2000
Location: Deepest Darkest Dorset!!
Posts: 10,011
Likes: 0
Received 1 Like
on
1 Post
If it's not your only car, I would have thought all of it, but if it is, then you would have to make a small allowance for oprivate use, but seeing as it's the biggest advert you can have, I'd go for nearly all of it.
03 April 2003, 10:41 PM
#4
Scooby Regular
Rob,
It depends if you own it personally or your business. If it's you, then you must keep track of your milage and breakdown between personal use and business use.
Have a look at the governments document - http://www.inlandrevenue.gov.uk/pdfs/ir125.pdf
Basically, you can claim things like depreciation, road tax, servicing, repairs, fuel, etc. based on the percentage of business miles to total mileage.
I don't think carrying a banner on your car means that you can claim every mile as business. You may be able to claim a percentage for advertising, but that's about it.
Best speaking to the Inland Revenue first. I used my RB5 for business use and got £4K from them last year, but that was for 3yrs worth of use.
Stefan
It depends if you own it personally or your business. If it's you, then you must keep track of your milage and breakdown between personal use and business use.
Have a look at the governments document - http://www.inlandrevenue.gov.uk/pdfs/ir125.pdf
Basically, you can claim things like depreciation, road tax, servicing, repairs, fuel, etc. based on the percentage of business miles to total mileage.
I don't think carrying a banner on your car means that you can claim every mile as business. You may be able to claim a percentage for advertising, but that's about it.
Best speaking to the Inland Revenue first. I used my RB5 for business use and got £4K from them last year, but that was for 3yrs worth of use.
Stefan
03 April 2003, 11:57 PM
#5
Scooby Regular
Join Date: Jul 2001
Posts: 1,725
Likes: 0
Received 0 Likes
on
0 Posts
Hi Rob!
Like already said you can claim the business percentage of the mileage if its your own car used for business use.
So thats all running costs plus capital loss which is 25% of vehicle costing 12k or more.
so if the car is worth 15k you can claim the business % of 3k.
i dont keep official mileage as its a pain in the **** and i forget.
But ive had a investigation and the tax inspectors and myself came to a agreement of 80% of my running costs were buiness use. im happy with that and theyre happy with that.
Fuel
insurance
tax
servicing including tyres and a couple of mods
capital loss.
also when you sell the vehicle if yo sell it for less or trade it in for less tha its written down value ie.
year 1 WDV 15k, less Capital loss 3k, 80% business = £2400
WDV = £12600 after year 1
sold in year 2 for 10k you then get relief (balance charge) on the 2600 youve lost at 80% = £2080
it all makes sense
Lee
Like already said you can claim the business percentage of the mileage if its your own car used for business use.
So thats all running costs plus capital loss which is 25% of vehicle costing 12k or more.
so if the car is worth 15k you can claim the business % of 3k.
i dont keep official mileage as its a pain in the **** and i forget.
But ive had a investigation and the tax inspectors and myself came to a agreement of 80% of my running costs were buiness use. im happy with that and theyre happy with that.
Fuel
insurance
tax
servicing including tyres and a couple of mods
capital loss.
also when you sell the vehicle if yo sell it for less or trade it in for less tha its written down value ie.
year 1 WDV 15k, less Capital loss 3k, 80% business = £2400
WDV = £12600 after year 1
sold in year 2 for 10k you then get relief (balance charge) on the 2600 youve lost at 80% = £2080
it all makes sense
Lee
04 April 2003, 04:56 AM
#6
Drag it!
iTrader: (1)
Join Date: Jun 2002
Location: Flame grilled Wagon anyone?
Posts: 9,866
Likes: 0
Received 0 Likes
on
0 Posts
Sorry, neither are fully right IMO. Lee your calculations are slightly out.
Rob, if you want me to answer your question, mail me.
Regards
Steven
Rob, if you want me to answer your question, mail me.
Regards
Steven
Thread
Thread Starter
Forum
Replies
Last Post
ossett2k2
Engine Management and ECU Remapping
15
23 September 2015 09:11 AM
