Is it possible to claim mileage on one vehicle and expenses on another?
I currently claim mileage on my van and my car which gets used sometimes in connection wirh the business as well, but I'm looking to lease a van so I will want to claim expenses on the van but carry on claiming mileage on the car. Does it possible to do this?
Lee, I think you need to speak to an accountant or the Receiver and get a definitive answer to that question.
If you take out a van on
Contract Hire, then the vehicle is off balance sheet. It isn't an asset on the books of your business. So the rentals would be an expense. So would any other expenses running that vehicle, fuel, servicing, repairs, etc.
The van isn't yours. So you can only claim each rental and running cost as an expense on your profit and loss account with an adjustment for private usage. Claiming business mileage for your private car will not change that.
The mileage method assumes you are using a private vehicle for private as well as business use from what I understand. You can only claim business mileage on the business mileage you do - 45p a mile then reducing after 10,000 miles.
Leasing is different as it would depend what the terms are of the leasing agreement.
There are some agreements that work in the same way as contract hire in that you can never own the van, but you own the risk. As such your van is an asset on your books as you are responsible for the residual value of the van at the end of the lease. If it isn't worth the final balloon payment, then you have to fund the difference from your business pocket. Its a loss and recorded as a loss on your profit and loss account. (If you sell it/trade it in for more than its residual value, then the difference is shown as a profit on your profit and loss account and subject to tax.) As you will never own the van, I would imagine the same rule applies. You can only claim back the rentals, the VAT and all other running costs business expenses.
If you took out a
Purchase Lease where you will own the van at the end of the contract, then I believe that the Receiver specifies how you can claim monthly installments/rentals and interest if they are going to be shown as expenses.
I'm afraid I don't know how WDA and the vehicle's annual pool value would apply as I've always paid cash for my vans. But you have to do one or the other as double-counting isn't acceptable by the Receiver.
My van is on the WDA scheme and I occasionally use my private car for business use. Both are vehicles are registered in my name. (The wife has a car registered in her name.) I just record the business mileage with a note of the reason and date and claim it as an expense.
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