[[GQC] Tim]

Hi there, just wondering what you exactly can report to HMRC for motor expenses? At the moment I'm just keeping the Diesel receipts, haven't had any major maintenance done since I've started up.

Should you also keep mileage?

Or is it only one of the above?

Thanks!

(ps. I just bought a £1200 Van, could I say that is an expense as well?)

[macmac]

every penny you spend on it, i put everything in, road tax, service, MOT, even windscreen wash.

[dave0123]

Yes everything, when you get it serviced etc even things you buy for inside such as you may buy a sat nav you could say its used fot business quotes etc which would be true.  macmac said it all really but even car/van insurance aswell.

You are sposed to keep milege yes and if you use george it has a feature for this! but if your using the vehicle for out of business hours to it gets hard so most just give a % like 70% busines 30% general pleasure use, thats how i done it with my accountant anyway obv didnt think of it off the top of my head lol.

Dave

[Paul Coleman]

Hi there, just wondering what you exactly can report to HMRC for motor expenses? At the moment I'm just keeping the Diesel receipts, haven't had any major maintenance done since I've started up.

Should you also keep mileage?

Or is it only one of the above?

Thanks!

(ps. I just bought a £1200 Van, could I say that is an expense as well?)

The first bits been answered already.  The £1,200 van costs can be offset against tax but must be spread over several (4 I think) years.  I believe that in year 1 you can offset £300.  Year 2 - £225 (that's one quarter of the remaining value).  Year 3 - £169 (that's one quarter of the remaining value).  Year 4 - £126 (that's one quarter of the remaining value).  Obviously check this with your accountant.  Remember to apportion it accordingly if you use it for any personal use.  Also, if you borrowed the money to buy it, you can offset the interest against tax in the same year as you pay it (subject to apportioning for any personal use again).

[DASERVICES]

I use the 40p per mile and the tax man gives me £2k back

[Pj]

You can claim 100% of all running and repair costs.
As for vehicle:  40% in first year regardless of weather it's new or used.
25% of written back value every year from then on.

ie. 1st year purchase £1200 = claim 40% = £480 tax deductable
     2nd year value now written back £720 = claim 25% = £280 tax deductable
     3rd year value now written back £440 = claim 25% = £176 tax deductable

etc.

[Paul Coleman]

You can claim 100% of all running and repair costs.
As for vehicle:  40% in first year regardless of weather it's new or used.
25% of written back value every year from then on.

ie. 1st year purchase £1200 = claim 40% = £480 tax deductable
     2nd year value now written back £720 = claim 25% = £280 tax deductable
     3rd year value now written back £440 = claim 25% = £176 tax deductable

etc.

Is that so?  I had always thought it was 40% in the first year only for new vehicles.  Just as well I leave it to my accountant then 

Also, claiming 100% of everything is fine if you have another motor for your private use but I doubt it would stand up to examination if the van was your only vehicle.  Unless of course you never used the van for anything other than work.

[H h20]

I only have 1 vehicle and i am having a trailer built for the extra water,the reason i did`nt go for another vehicle was the extra running costs,yes you can claim it on your tax but you still have to earn the extra money to run another vehicle and when we get bad weeks ie rained off,snow,wind etc that means less wages but still need to pay out,this is just my opinion on the matter and using another vehicle probably is`nt an issue for most but id rather keep my overheads low,
Gaz

[Pole2pole]

every penny you spend on it, i put everything in, road tax, service, MOT, even windscreen wash.

Mac,does that include insurance too?

[marc al]

  When you claim 40p per mile, does that 40p also include all service costs, or can you claim those on top of that 40p??

  I am at the moment claiming for the fuel, but as of April the 5th was going to change over to the 40p per mile.

   Also what is the maxmum you can claim per mile, does it increase with vehicle size??

   Marc

[matt]

  When you claim 40p per mile, does that 40p also include all service costs, or can you claim those on top of that 40p??

  I am at the moment claiming for the fuel, but as of April the 5th was going to change over to the 40p per mile.

   Also what is the maxmum you can claim per mile, does it increase with vehicle size??

   Marc

no, you just get 40p per mile,m thats it, end of costs

[[GQC] Tim]

Ok, so it's either 40p mileage cost OR Vehicle expenses ie. Fuel/maintenance??

I'm confused

You can claim 100% of all running and repair costs.
As for vehicle:  40% in first year regardless of weather it's new or used.
25% of written back value every year from then on.

ie. 1st year purchase £1200 = claim 40% = £480 tax deductable
     2nd year value now written back £720 = claim 25% = £280 tax deductable
     3rd year value now written back £440 = claim 25% = £176 tax deductable

etc.

I don't have an accountant, but how should I do this? Just send them the receipt and put it in my records as the lump sum of £1200? or this year just £480, next year £280?

[DASERVICES]

Marc,

You cannot change over to 40p per mile unless you change your vehicle, whatever method you choose must remain with that vehicle until you change to a new one.

It's 40p per mile for the first 10,000 miles then 25p thereafter.

The reason why I went this route is in my first year I ran both methods in unison and found out that I was better off the 40p per mile route. Accountants will not adivise that route because they get to gain more money from you by going through your receipts.

I do around 14,000 miles a year min so from that I get to claim £5,000 as my vehicle expense. I cannot claim any other thing against vehicle expense. My actual running cost fuel, tax . depreciation etc.. come to around £3,000 a year so the tax man gives me £2000.

But each person is different so it may not work to your benefit, I did do myself a spreadsheet and was surpirsed that if I bought a new vehicle in time it pays to go the 40p per mile route which I was surprised.

Hope this helps.

Doug

[NBwcs]

The 40p method is a lot simpler,and you'll be surprised how many miles you clock up. All my work is within a 4 mile mile radius of home yet i clock up 70 (genuine) miles a week.The lower the value of the motor, the more attractive the 40p method seems to be, (unless your motors a real dog).Ive compared the two methods over the last two years and its worked for me so far.Do a few rough sums.tax,insurance,petrol,mot etc and then record your milage for a week,you'll soon get a rough idea.

[[GQC] Tim]

lol well I'm too far with my car then, no 40p thing for me.

So I'll just record every expense and don't list mileage then, I'm using it a lot for personal use as well anyway. 

[macmac]

i've just realised that i'll be better off with the 40p per mile thing (10k per year), thats 4k. i spend about 2k per year on fuel etc.
Hey i'll be 2k better off then

[Paul Coleman]

i've just realised that i'll be better off with the 40p per mile thing (10k per year), thats 4k. i spend about 2k per year on fuel etc.
Hey i'll be 2k better off then

It's too late for me as I intend to keep my current van until Autumn 2010 (unless it falls to bits).  I would have been better off down the years with the 40p a mile but wasn't aware of it until I used this forum.  I had small vans (was trad cleaning) that didn't give too many problems and my mileage was higher than now.  Now I have a much larger van so more fuel costs and probably more maintenance.  However, I do less miles (about 10k a year).  I would probably still save at 40p a mile but it would only take one fair sized repair to make me worse off.

[[GQC] Tim]

Ok, so it's either 40p mileage cost OR Vehicle expenses ie. Fuel/maintenance??

I'm confused

You can claim 100% of all running and repair costs.
As for vehicle:  40% in first year regardless of weather it's new or used.
25% of written back value every year from then on.

ie. 1st year purchase £1200 = claim 40% = £480 tax deductable
     2nd year value now written back £720 = claim 25% = £280 tax deductable
     3rd year value now written back £440 = claim 25% = £176 tax deductable

etc.

I don't have an accountant, but how should I do this? Just send them the receipt and put it in my records as the lump sum of £1200? or this year just £480, next year £280?

Can anyone please answer those two questions, they're kinda important!

Many thanks.

[DASERVICES]

Run the two in unison then you will know what is best, for expenses its fuel, tax, mot, ins and repairs. At the end of the financial year you will know whats best, if you are a excel wizard like me you can create the answer.

[DASERVICES]

Just seen your mail address .nl are you based in holland otherwise I am wasting your time