Sole Trader Help!! - Vans & Cars

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JamesB
JamesB Registered Posts: 51 Epic contributor 🐘
Apologies for asking simple questions....I am a newbie and it has been a while since I have done any studies on sole traders!!


If a sole trader buys a van am I right in saying:

-Purchase price can be capitalised and qualifies for AIA (business % only)

-All expenses including insurance, petrol etc can be claimed but if there is any private use a flat £3k benefit will apply along with a fuel benefit of £550?

-Or as an alternative to capitalising the van and claiming for the above you can simply claim the 40p/45p
mileage allowance?

Your help is very much appreciated.

J

Comments

  • qwerty
    qwerty Registered Posts: 82 Regular contributor ⭐
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    The £3,000 is for benefits in kind for employees, not sole traders.

    If there is any private use, you add back the % of costs in the tax computation that relate to the private use and restrict the capital allowances claimed too.
  • clegganator
    clegganator Registered Posts: 184 Dedicated contributor 🦉
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    Yep but depending on the price of the van it might be worthwhile keeping the van out of the business and just charging mileage. It would have to be a nail of a van that runs on thin air but possible...
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Usually a van can be claimed in full if the client has use of another vehicle, ie his own car, wife's car etc. If it is a relatively new car I usually suggest capitalising and claiming all expenses.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    Yep but depending on the price of the van it might be worthwhile keeping the van out of the business and just charging mileage. It would have to be a nail of a van that runs on thin air but possible...

    You could we be right. For someone that does 10k miles, you'd have £4,500 of allowance. That could well be more than the capital allowance, service, insurance, and fuel. Maybe..
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