I am a sole trader currently accounting on a cash basis and using simplified expenses.
I am in a position to buy a van for which I will use cash plus a trade-in of my existing vehicle which I use for both business and personal use. The new van will be a direct replacement of this vehicle and so will also be used for both business and personal use.
I'm struggling to know how to account this and so am looking for some guidance.
I have looked on HMRC website help for cash basis accounting and all I have found is the following which doesn't help much:
"If you buy a car for your business, you can claim the purchase as a capital allowance (but only if you’re not using simplified expenses to work out your business expenses for that vehicle)."
I am thinking then that I can probably claim a portion of the new van cost as an expense based on my split of business/personal usage but not the full purchase value?
Thanks!
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