Business mileage allowance

by **goosegreen** on Mon Sep 26, 2005 1:04 am

Hi
I am a sole trader and use a van for business driving only, up to now I have just claimed fuel, insurance,road tax and maintainance. Could I claim mileage @40p up to 10000 miles pa as this would be a greater amount than what I am currantly claiming against tax Ad if so would I show it in Motoring costs on the accounts

Regards John

by **deanshepherd** on Mon Sep 26, 2005 1:57 am

Hi John

Have you also been claiming capital allowances for the cost of your van?

Using the mileage rates is an alternative option although once you have committed to one method for a particular vehicle you cannot then switch to the alternative.

Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

by **King_Maker** on Mon Sep 26, 2005 2:26 am

And any finance interest to purchase the van?

by **goosegreen** on Mon Sep 26, 2005 5:02 am

I had to buy a cheap van last december as my old one died. It cost Â£800 and I used my own money to puchase it, I have not claimed any allowances against it

Regards

John

by **deanshepherd** on Mon Sep 26, 2005 7:02 am

Hi John

If you have kept a mileage log then compare the costs to see which gives you the greater tax relief.

If you use the mileage option then this can indeed be shown in motoring costs.

Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

by **goosegreen** on Mon Sep 26, 2005 8:41 am

Thanks for all the replies, I have worked out that my total claims for motoring expenses was Â£1100 and as I have done 8500 business miles this would work out at 8500 x 40p=Â£3400 Would the IR accept this 0n an 9 year old van.
Although I havenÂ’t kept a mileage log I can prove the start mileage as I had the van M.O.Td the day I bought It which shows the mileage.

John

John