Personal Car used for business

[uk26]

if i purchase a car personally and not via the company i own, and claim back £0.40p per mile, can i also claim other expenses for the car?

Private usage 40/60 (60% being business usage)

 

[David Griffiths]

No. The 40p covers everything, and increases to 45p from today

 

[DeanCo]

You can claim either the 45p for the first 10,000 mile or insurance, service and repairs etc depending on the proportion of business/personal use.

 

[David Griffiths]

. . . or a proportion of insurance, service and repairs etc depending on the proportion of business/personal use.

For a car used by a director in connection with his company? When did that change?

 

[DeanCo]

For a car used by a director in connection with his/her company? When did that change?

The OP has not stated that his/her company is Limited or is a director, therefore, it is assumed his/her company (oxford dictionary definitiion: commercial business) is a sole trader.

 

[garlex]

if i purchase a car personally and not via the company i own, and claim back £0.40p per mile, can i also claim other expenses for the car?

Private usage 40/60 (60% being business usage)

You may also be able to claim extra for a passenger.

 

[MyAccountantOnline]

if i purchase a car personally and not via the company i own, and claim back £0.40p per mile, can i also claim other expenses for the car?

Private usage 40/60 (60% being business usage)

David has already answered your question but just to add before making a decision its wise to do some calculations to see which gives you the best tax saving.

If you are trading via a limited company it is generally better to claim the mileage allowance rather than have a company car, which creates a tax charge called a benefit in kind, but it does depend on the vehicle you're looking at.

 

[David Griffiths]

The OP has not stated that his/her company is Limited or is a director, therefore, it is assumed his/her company (oxford dictionary definitiion: commercial business) is a sole trader.

What's that famous quotation?

Assumption is the mother of all screw ups

I have heard other variations, not suitable for UKBF

 

[Paidpal]

but it does depend on the vehicle you're looking at.

Could you specify that bit?

 

[MyAccountantOnline]

Could you specify that bit?

Yes

A car with high Co2 emissions gives rise to a high benefit in kind tax charge the lower the Co2 emissions the lower the tax charge.

 

[MyAccountantOnline]

Here's some info regarding car benefits - http://www.hmrc.gov.uk/cars/rule-changes.htm

 

[Paidpal]

And that makes me believe it is better to simply buy a car for personal use and than claim mileages... sounds like simply less hassle.

With that in mind, is mileage checkable? If, let's say, I want to go from London to Croydon, I can buy TFL travelcard for few quid (cash), but in spreadsheet I can claim mileage for that distance?

 

[Lease4Less]

You can claim the following:

100% of the purchase price in year1 if CO2 is 110 or below
Claim 20% of the written down value if CO2 is between 111 and 160
Claim 10% of the written down value if CO2 above 160

e.g

Assuming purchase price of £15K and CO2 of 130

Year 1 - £3000 (20% of £15K)
Written down Value now 12K

Year 2 - £2400 (20% of 12K)
Written down value now £9,600

Year 3 - £1960 (20% of £9,600)
Written down value now £7680

You can offset written down allowances against Corporation tax

 

[David Griffiths]

And that makes me believe it is better to simply buy a car for personal use and than claim mileages... sounds like simply less hassle.

With that in mind, is mileage checkable? If, let's say, I want to go from London to Croydon, I can buy TFL travelcard for few quid (cash), but in spreadsheet I can claim mileage for that distance?

Of course you can. It's called fraud.

 

[MyAccountantOnline]

And that makes me believe it is better to simply buy a car for personal use and than claim mileages... sounds like simply less hassle.

With that in mind, is mileage checkable? If, let's say, I want to go from London to Croydon, I can buy TFL travelcard for few quid (cash), but in spreadsheet I can claim mileage for that distance?

Its not a huge amount of hassle to deal with the admin of having a company car if its beneficial.

Is mileage checkable - it relies on your honesty to a certain degree but HMRC arent stupid and as David says it is tax fraud.

 

[Paidpal]

Of course you can. It's called fraud.

Shame... I guess I have to cancel my car trip from Richmond to Stratford through Tokyo

 

[MyAccountantOnline]

Shame... I guess I have to cancel my car trip from Richmond to Stratford through Tokyo

It's probably best

 

[Paidpal]

One real-life question that came to my mind.

When I use my personal car in order to get to the airport, and I travel with friend, for someone will need to bring the car back, do I claim only to-airport distance, or can I claim return distance too? Otherwise I'd need to leave car on the carpark, and that surely would cost a little fortune.

 

[DeanCo]

One real-life question that came to my mind.

When I use my personal car in order to get to the airport, and I travel with friend, for someone will need to bring the car back, do I claim only to-airport distance, or can I claim return distance too? Otherwise I'd need to leave car on the carpark, and that surely would cost a little fortune.

Yes, you can claim both ways. So long as you have a reasonable explanation of the miles claimed and you can argue your case if you are ever investigated.

 

[Paidpal]

Thanks, now it all makes sense!