Car Expenses for Self Employed

System
System Posts: 100,534 🤖 Admin 🤖
Hi There

I'm doing a tax return as a favour for a family member, and he's a self employed builder. He uses his car to get to sites, and I know the rules are different to vans. I'm assuming he can claim fuel for business mileage - but what about insurance and servicing and MOT's. Can he claim a percentage for business use? And can I assume a simple percentage, or do the miles need to be calculated accurately. Eg he used his car for business use about 80% of the time, as they use his partners car for most private journeys.

Many thanks for any assistance

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Car Expenses for Self Employed

    That is what I have always done with no problem. I always ask the client to work out a realistic estimate for private car use and use that percentage over all the expenses, including capital allowances. I have never had a problem with this, although I would suggest that you do make sure that your client is being realistic! I have one client who took this literally and made a note of all her mileage for business and private use for a whole year to work out her business/private use!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Car Expenses for Self Employed

    Me too :D

    If you also look at the thread below this one, there is lots more stuff about car expenses, including using the 40p/mile as an alternative.

    Claudia
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