Claiming Motor Expenses for Sole Traders
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- Опубликовано: 7 фев 2025
- If you are a sole trader or partner in a partnership then you have a choice as to how to claim motor expenses; either through the 'simplified expenses method' (flat rate per business mile) or a detailed listing of all motor expenses and then applying a business use percentage to the total.
Very well explained thank you.
You’re welcome glad you found it useful
If I am a self employed sparkie at 50k earnings per annum, , and purchased a 10k van, can I use the full amount deducted again my profit?
Yes.
@@simongray2484
Then in theory, if it was my first year trading and my turnover was 25k, with a 10k van and 5k materials, I would not have to pay any tax to the tax man? Not one penny, maybe national insurance
Hi Simon, I have charged my clients 0.45 per mile expenses when taking them out and about in my car, can I still claim option 2 as charging this to my clients for their journeys won't cover my milage from client to client etc. Thanks!
Can you help pls. ive gone for mileage for my travel for sole trader. BUT. What can i claim for. I'll give you an example
I work for a car hire firm .
I look on app and accept jobs. This is for collection and delivery.
When delivering, i go to a showroom. Most time, same showroom and pick up car and drop off to customer. I have someone following me so i can drive home.
The other is collection. I go to the clients house and pick up the car and then drive to showroom drop off and drive home. In this situation what can i claim for. Times i use train.
Also, is that is a ticket claim or mileage claim .
Any help would be greatly appreciated as ive got mixed answers.
Sorry foe the big read
If you are using cash basis and normally used simplified expenses, this really hit you during COVID and you hardly used your car and instead worked from home. Because you still had to pay insurance, MOT, road tax for the car you used only for business anyway...
is it still possible to claim these expenses instead? (even though you used simplified expenses the previous years)?
Normally you have to stick to the same method for a car, but since COVID was such an atypical situation, I would have thought some options should have been given.
Yes you’re right usually you stick to the same method… worth giving it a go and putting full disclosure in the white space for reason for change of practice
Hi Simon, very simple well explained video. I’m a sole trader and purchased a van solely for business 4 years ago and claimed the purchase price off my profit in that financial year. I haven’t accounted for anything since in my accounts, do I have to account for depreciation etc each year and when I sell it does the sale price go back into my account profits that year ?
Hi Bryan so you had full tax write off in year 1 meaning there is potentially a tax bill when you sell the van. As far as accounting is concerned, you can depreciate it any way you like as hmrc will ‘add it back’ in any case, then any profit or loss on disposal is the difference between the book value and proceeds, but this figure could bear no resemblance to the taxable profit at that point, again as with depreciation hmrc will adjust for it
Thanks Simon, yes full tax write off on year 1 so am I right in thinking I don’t have to do anything on my tax return until I come to sell and then I have to add the proceeds into my income for that year meaning I’ll pay tax on whatever I sell it for ? @@simongray2484
Thank you for the video. But can you do a tutorial on how to claim the flat rate mileage allowance. I work for amazon flex and would like to claim the mileage allowance. Thank you.
Glad you liked the video, yes will do for sure
@@simongray2484 thank you. Looking forward to it.
Hi Simon if I’ve purchased a new van for work how much can I claim for the first year? Thanks
Hi Simon , I’ve leased a small van for my business. Can I claim for the 3 years of lease ?
You can claim a deduction for the monthly lease payments, and if you are vat registered you can claim 50% if the vat back
as a self employed person i see lots of information including this one, of to and from work you cannot claim. But i am still unsure if i can claim a percentage for car expenses excluding fuel. As in road tax, repair costs, insurance etc. i do not use the car for business other than to and from work.
Assuming your home is your ‘base’ as a self employment person then all trips from there to ‘work’ are business miles… so work out what percentage of biz miles you do to total miles and apply that to ALL motor expenses
thank you for that answer, but i am officially now confused more than before, everywhere i read was i couldn't claim mileage if it was commuting from home to place of work. I don't drive for work, in my car, just to it so to speak, i just assumed i could claim a percentage of the car expenses as without the car i couldnt get to work. When i get to work i deliver goods in there transport but under a self employed basis.
@@helinghaus don’t get confused with the mileage option that’s a flat rate based on business miles which is an alternative to a percentage of all car expenses
Hi simon, if the car is on a PCP finance agreement, is any amount of that deductable?
Yes absolutely, the monthly payment will be tax deductible and depending on the terms of the PCP deal, the vehicle may be booked on the balance sheet and tax depreciation claimed
Hi Simon, Im a landlord - self employed. Looking to buy a vehicle to use for business. Will I be able to claim anything from the purchase? I will be buying with cash.
Yes you can claim capital allowances on the vehicle used in the business
Hello can you claim this as a landlord
On a self-assessment
Thanks
Yes on business trips that you make to your property to sort out tenants/ workmen and collecting the rent!
@@simongray2484
Thanks 👍😌👍
I only became full time self employed end of 2019 and used flat rate because I’m Lazy. Something I still confused about is what is classed as business miles. I’M a freelance fitness instructor so I claim for the way to the gym but can I claim for the way back or is that classed as personal as it from work to home?