[b]MOTOR VEHICLE & CAPITAL INTRODUCED[/b]
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Can anyone please advise me?
I have a friend who has now gone self employed (A carpenter as from 01/07/07). He has a transit van, which he has had for about 12 months prior to going self-employed. The van is valued at about £750 and it’s his only form of transport. Would there be an option to introduce the van into his self-employment accounts? If so, would the entries be DR Motor Vehicle & CR Capital Introduced? If this was the case would the Capital Introduced account at the period end (not a complete year) be netted off against his drawings account? If the van is not solely used for the business, let’s say only 80% business use. How would that affect the situation if he still wanted to introduce it into the business?
Secondly, if he decided not to introduce it (assuming that it would be possible to do so), am I right in thinking that he could do either one of two things:
1 – Claim 80% of all fuels, motor repairs, RFL and Van Insurance as business expenses
Or
2 Claim business miles travelled at a maximum of .40p for the first 10,000 & .25p thereafter.
Did I read somewhere on the forum that there was a threshold relating to £64,000 turnover – does this mean that the fixed Profit Car Scheme IS NOT an option if one’s turnover = 2 or exceeds this threshold value?
Thanks in advance & Kind regards
I have a friend who has now gone self employed (A carpenter as from 01/07/07). He has a transit van, which he has had for about 12 months prior to going self-employed. The van is valued at about £750 and it’s his only form of transport. Would there be an option to introduce the van into his self-employment accounts? If so, would the entries be DR Motor Vehicle & CR Capital Introduced? If this was the case would the Capital Introduced account at the period end (not a complete year) be netted off against his drawings account? If the van is not solely used for the business, let’s say only 80% business use. How would that affect the situation if he still wanted to introduce it into the business?
Secondly, if he decided not to introduce it (assuming that it would be possible to do so), am I right in thinking that he could do either one of two things:
1 – Claim 80% of all fuels, motor repairs, RFL and Van Insurance as business expenses
Or
2 Claim business miles travelled at a maximum of .40p for the first 10,000 & .25p thereafter.
Did I read somewhere on the forum that there was a threshold relating to £64,000 turnover – does this mean that the fixed Profit Car Scheme IS NOT an option if one’s turnover = 2 or exceeds this threshold value?
Thanks in advance & Kind regards
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