Petrol and van expenses for subbies

lou123

Hi there,

I'm a qualified MAAT but work in the insurance industry. I've agreed to do the books and attempt the tax return for my son who became self employed mid last year.

He bought a van and tools for his job as a plumber and heating engineer and he sub-contracts for Centrica regularly, along with a few private jobs he gets from advertising.

I'm not sure how I treat the diesel etc as he doesn't have a specific place of work and uses the van for 95% work related journies, including trips to pick up materials for his sub-contrated jobs with Centrica.

I would really appreciate if someone could help me please and guide me in the right direction. I have read the HMRC site but I'm still confused.

Any advice would be greatly appreciated.

Thanks, Laura

T.C.

Not sure of your query. If he is a subbie and this is the van he uses solely for work, working 'all over the place', then his diesel is an allowable expense. If he does not have a second vehicle, or access to one (wife or girlfriend's car), then it may be prudent to put in a little private use for when he uses it outside work. Hope that makes sense.

lou123

T.C. wrote: »

Not sure of your query. If he is a subbie and this is the van he uses solely for work, working 'all over the place', then his diesel is an allowable expense. If he does not have a second vehicle, or access to one (wife or girlfriend's car), then it may be prudent to put in a little private use for when he uses it outside work. Hope that makes sense.

Thanks for your help T.C.

Therefore can he can claim 40p up to 10,000 miles and 25p over that as mileage calculated on 95% of his mileage used, and if so, does he need the receipts for petrol as proof or a breakdown of the miles travelled?

I appreciate you help, thank you.

Laura

T.C.

You can do it that way, or why not just keep all the receipts and put them through as the expenses. If you use the mileage rate, you will need to have a mileage record kept by him, which can be a bit more difficult with a subbie, in my experience. At least if you just use the receipt, he just has to hand them all over to you.

lou123

Thanks T.C. you've been a great help and it's much appreciated.

Enjoy the rest of the sunny weekend!

Lou