This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Self Assessment - bought a van - help please

BobMc
Posts:1
Joined:Fri Jan 06, 2017 11:13 pm
Self Assessment - bought a van - help please

Postby BobMc » Fri Jan 06, 2017 11:22 pm

I am self employed and operate under the VAT registered threshold. In 2015/16 i bought a van (2nd hand) for my business use. I got a personal loan to buy it out right. My question is how do i claim this as an expense on my self assessment return?
I use a simplified expenses, so flat rate for my mileage etc.
Does the total cost of the van go as a capital expense? or do i claim the monthly loan repayment (total or just interest part) as a monthly expense? Or do i just continue to claim the 40p per mile expenses?
Tried contacting HMRC but they just signposted me to some online guidance which didn't really answer my question and baffled me further.
Confused! please help!!
Thanks
BobMc

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Self Assessment - bought a van - help please

Postby bd6759 » Sat Jan 07, 2017 10:21 am

It depends. You cannot claim 45p per mile if you claim capital allowances or, if using the cash basis, include the cost of the van as an expense

The interest you pay on the loan is an allowable expense.

Cash basis - https://www.gov.uk/simpler-income-tax-c ... cash-basis

Simplified expenses - https://www.gov.uk/simpler-income-tax-s ... /vehicles-


Return to “General”