Dog Walker Van

[Walker1]

Hi

We are dog walkers who have just bought our first van which is custom fitted with crates. Up to now we have been using our large estate which has done the job very well. We are now running the van and the car. We are also using both vehicles for pleasure as well as business. We are heavily involved in the dog world and compete at the weekends where the van will be used for transporting and holding our own dogs. The car is our main vehicle during the week.

We keep a detailed record of all business miles and also all our petrol receipts but am a bit unsure as to what to do with them. I have a basic accounting spreadsheet in excel. I was using Quick File but it didn't fit out needs really and don't want to pay for a package at this point.

I think it would be easier to claim the 45p/mile but do I need to save diesel receipts as well? Does the 45p/mile cover all vehicle costs like insurance and tax or do I have to apportion those as well. Am confused by this.

Any help gratefully received

 

[Ola1]

May i ask, are you and the other(s) employed by the company you run ?

 

[Walker1]

My husband is a sole trader of the business. I am currently transitioning from disability benefits so am currently doing allowed voluntary work. I hope this answers your question as am really learning from the bottom here :-S

 

[Scalloway]

If you claim 45p per mile you just need to keep detailed mileage records. 45p per mile covers every cost - fuel, insurance, repairs, depreciation etc.

 

[Walker1]

We have recently bought a van and have been custom fitting out the van with a raised floor, custom made crates and roof vents etc. Would this have to be covered by the 45p/mile figure as well or could these be added on separately. Also do I have to stick to the same method each year or could I use the receipts method this year as vehicle costs are high and change to the 45p/mile in the next financial year?

 

[Scalloway]

I would think that all your costs in converting the van would be covered by the 45p per mile. It might be worth doing some sums to see which approach works out most beneficial.

 

[David Griffiths]

Also do I have to stick to the same method each year or could I use the receipts method this year as vehicle costs are high and change to the 45p/mile in the next financial year?

Once you choose a method, you have to stick with it as long as you own the vehicle. You cannot chop and change.

 

[Caspar]

The 45p per mile covers the first 10, 000 miles in a year anything over in the same year is charged at 25p per mile. You start from zero again at each new year.
Caspar

 

[BustersDogs]

Can you not just claim everything through the business? I have a work van (I am also a dog walker) and am involved heavily in the dog world, but I consider anything to do with dogs part of my business, so even though I use the van unpaid at weekends, the rosettes I win at shows, the courses I do, and training I go to is all part of the business.

My car is also part of the business (both are signwritten) although my accountant makes me put down that 10% is SDP, even though I don't go anywhere in the car that's not involved with dogs.

 

[Caspar]

Can you not just claim everything through the business? I have a work van (I am also a dog walker) and am involved heavily in the dog world, but I consider anything to do with dogs part of my business, so even though I use the van unpaid at weekends, the rosettes I win at shows, the courses I do, and training I go to is all part of the business.

My car is also part of the business (both are signwritten) although my accountant makes me put down that 10% is SDP, even though I don't go anywhere in the car that's not involved with dogs.

When looking at business and personal usage certain things are taken into account. For example re your car, you surely must go to the supermarket, visit family and friends, go out on an occasional evening, go on holiday sometimes in the UK etc? An accountant has to look at is it used 'wholly and exclusively' for business use. There is going to be some personal usage in there. I actually think 10% is quite a low figure to put against personal usage.

The same would apply to your van, your have a business vehicle (which is sign written), but you use this at week-ends related to your hobby - and whether you win a rosette at a competition or lose, this would not affect your business in any way, as I believe this is something personal that you do related to your 'hobby' but you also run a business related to your love of dogs.

However, courses and training at week-ends for the business, is a business related usage of the van.
Caspar

 

[BustersDogs]

When looking at business and personal usage certain things are taken into account. For example re your car, you surely must go to the supermarket, visit family and friends, go out on an occasional evening, go on holiday sometimes in the UK etc? An accountant has to look at is it used 'wholly and exclusively' for business use. There is going to be some personal usage in there. I actually think 10% is quite a low figure to put against personal usage.

The same would apply to your van, your have a business vehicle (which is sign written), but you use this at week-ends related to your hobby - and whether you win a rosette at a competition or lose, this would not affect your business in any way, as I believe this is something personal that you do related to your 'hobby' but you also run a business related to your love of dogs.

However, courses and training at week-ends for the business, is a business related usage of the van.
Caspar

I home board dogs, so I don't go out, most of my friends and all my family are walking distance, they drive if we go out or we get a taxi if I do happen to have a night without clients dogs, shopping is delivered because workign 7 days as week I don't have time, I don't go on holidays and didn't before I ran the business either (not after two holidays where I came home early after less than a week as I hated being away so much) and in the dog world you need to justify why you can teach, ie you have to win to prove your skills. I also have to do activities with my own dogs to get my teaching qualification (KCAI the 'B' modules) - I wasn't doing dog shows at weekends until I realised I didn't have enough points to get my qualification so had to start going again, AND sign two fo my dogs up for training classes just so they could pass the Kennel Club tests (nobody will test you if you haven't done their course) so yes I think that's a legitimate business expense. I wouldn't be doing it if I didn't have to get my points up for that as I trained both dogs myself. I spoke to the accountant about leaving some of the events out because I was concerned about the difference between turnover and profits and he said that could be done to make profit look bigger but that I should carry on putting things through because they were a part of the business. When I get accredited in 2015 I can stop doing all the events expect for the CPD.

I resent having to leave out 10% because I never go anywhere in my vehicles that's not for work! Who wants to go out in a car that's covered in dog hair, mud, poo bags and dog slobber!? Taxis all the way!

 

[Caspar]

My goodness - you work hard!

 

[BustersDogs]

I'm bloody sick of it. Giving up the home boarding in December, so I'll get my evenings back but will still be out at shows at weekends. I'm now looking into licensing my business name so I can live off other people's earnings for a while.

I am having a week in Bath in March. But it's on a dog training course.
​

 

[ChrisTr]

Hi

We are dog walkers who have just bought our first van which is custom fitted with crates. Up to now we have been using our large estate which has done the job very well. We are now running the van and the car. We are also using both vehicles for pleasure as well as business. We are heavily involved in the dog world and compete at the weekends where the van will be used for transporting and holding our own dogs. The car is our main vehicle during the week.

We keep a detailed record of all business miles and also all our petrol receipts but am a bit unsure as to what to do with them. I have a basic accounting spreadsheet in excel. I was using Quick File but it didn't fit out needs really and don't want to pay for a package at this point.

I think it would be easier to claim the 45p/mile but do I need to save diesel receipts as well? Does the 45p/mile cover all vehicle costs like insurance and tax or do I have to apportion those as well. Am confused by this.

Any help gratefully received

To determine whether the flat scheme rate or the normal cost method will provide you with the greatest deduction we would really need to know more information about the vehicle. However, I'll make some assumptions and hopefully that will help.

See this image for a screenshot
s22.postimg.org/nkd550l7l/car_tax_model.png

Generally, if you're doing high mileage and the vehicle is low value the flat rate scheme will be better. If you're doing low mileage and the vehicle is high value the cost scheme will be better.

Other points:

• You will be unable to claim for insurance and additional vehicle expenses. Deductions for these are included in the Flat / 45p rate.
• HMRC doesn't state that you need to keep a hold of receipts, they simply say you need to "keep a record" of your business miles. However, to keep your business organised it's always a good idea to hold on to your receipts.