[Spruce]

Hi All
I'm in the process of replacing my old Suzuki Carry van for a car. Although I started out wfp with this van it was too small and the reason why I now have a Citroen Relay with all my stuff in that.

The Suzuki has stood around for years now, mainly used to go collecting on a Friday evening. I've put on about 25k in the last 9 years and estimate about a business to private useage of 40% business to 60% private.

For those who use a private car for occassional business, how do you account for it tax wise? Would you charge a rate for business mileage (per mile) or just split the private/business useage percentage wise as with the van?

TBH I haven't looked into this, but do know that cars and vans are treated differently by the tax man.

I bought this Estate car as it was too good to let pass by. Last year the MOT guys said that the Suzuki was looking very rusty underneath and they had difficulty getting it through its emissions test despite it's low mileage of 45K. It also needs tyres, a lower ball joint, discs and pads, maybe a cat because of emissions, so not worth spending too much on due to its age (an X reg).  

Thanks for your input.

Cheers

[DaveG]

Hi Spruce,  how do you "get away" with using a second van for picking up etc ?

Wouldn't the taxman expect you to use your main van?

Cheers

[Frankybadboy]

ive put to very dear carbon bike though my account ,as I use them for collecting 



no different to the bike to work scheme

[Spruce]

Hi Spruce,  how do you "get away" with using a second van for picking up etc ?

Wouldn't the taxman expect you to use your main van?

Cheers

Hi Dave
Its always been part of the business. In fact the Receiver advised that, as the van was only worth a couple of hundred quid, I was to write the value off. I had phoned to find out how to write my trailer off the books as I had scrapped it and sold some of the components. They helped me on how to do that. The lady asked me about the other stuff I had, and she advised me to clear all the small bits of the Capital equipment depreciation register.

I've collected in my big van with the tank half full of water for 3 weeks on the trot. Daughter and SIL asked if they could borrow the Suzuki for something each Friday. Trust me, I wasn't comfortable doing the round collection in it due to its size, even although I work from it each day.

[DaveG]

Thanks for the answer Spruce

[HampshireWindowCleaning]

I can't belive you still go collecting! Why not put all your customers on bacs or cheque payment and you wouldn't have this dilemma.

[andyM]

I would presume if you are just going to be using the car occasionally for business use (collecting), that the tax man would deem the HMRC mileage allowance as the acceptable way to do it.
 

[Spruce]

I would presume if you are just going to be using the car occasionally for business use (collecting), that the tax man would deem the HMRC mileage allowance as the acceptable way to do it.
 

Thanks. I would see that would probably be the way it would work out.

Yes, we hate collecting. We bought this round 8 years ago and the previous cleaners had had it for years as well. We have pretty much the same old customer base and internet/bacs isn't something we can persuade people to do. They have always had the collection service.

We didn't collect for 5 weeks recently due to hospital visiting committments every evening, and TBH, not one person made any effort to phone and make arrangements to settle the debt.

We have put slips in asking for cheque payment to be sent, but just got 1 response from that in this area where the majority of our work is during this non collecting period.

We have less issues with other areas we have expanded into as the majority pay by cheque or are at home when we call.