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Where Taxpayers and Advisers Meet

Self Employed Plumber - Use of Van affected by covid

GasEngineer
Posts:11
Joined:Mon Jan 02, 2017 10:47 am
Self Employed Plumber - Use of Van affected by covid

Postby GasEngineer » Thu Sep 16, 2021 10:46 am

I have always used my van solely for business purposes and have claimed the full costs of running it including fuel, insurance, servicing etc.

Since April 2020 I have done very little work as a result of covid and started using my van for personal purposes too, including moving house.

Do I now make an estimate of the split between personal/private use (around 95% personal I would think) and claim a percentage of running costs or should I now switch to mileage rates for the business use? If so do I have to explain the change on my 20/21 tax return?

I originally claimed the cost of the van as a capital allowance so will that be affected?

Thankyou.

robbob
Posts:3149
Joined:Wed Aug 06, 2008 4:01 pm

Re: Self Employed Plumber - Use of Van affected by covid

Postby robbob » Thu Sep 16, 2021 11:34 am

Do I now make an estimate of the split between personal/private use (around 95% personal I would think) and claim a percentage of running costs or should I now switch to mileage rates for the business use? If so do I have to explain the change on my 20/21 tax return?
Yes you need to adjust for private use.

Ref mileage - as you have claimed capital allowances you cannot swap to using mileage method unless you change your vehicle (mileage would only be allowed ref new vehicle costs) it would need to be permanent method swap for new vehicle too until that vehicle is sold - ie choose and stick with chosen method - mileage covers cost of purchase + running costs so swapping to mileage now after you have had the benefit of the AIA would be having your cake and eating it (not allowed here - you may need to go to your mam on nan's house for that presuming you are lucky enough in that regard).

GasEngineer
Posts:11
Joined:Mon Jan 02, 2017 10:47 am

Re: Self Employed Plumber - Use of Van affected by covid

Postby GasEngineer » Fri Sep 17, 2021 7:35 am

Thanks for the quick reply. Very helpful.

I wasn't sure if it was permissible to just claim the % of the costs of the van used for business as I had originally claimed the full cost as capital allowance.

Thanks again.


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