CIS Subcontractor - motor expenses

Fitz
Fitz Registered Posts: 26 Regular contributor ⭐
in General accounting discussion
For CIS subbies I normally claim mileage for their business miles. If they buy a new motor vehicle can I claim a business proportion as an AIA ?

Comments

  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    If its a van yes, but then you would have to claim actual expenses and stop claiming mileage. You can only change methods when a vehicle is changed.

    You can not claim cost of vehicle as well as claiming mileage allowance
  • jamesm96
    jamesm96 Registered Posts: 523
    groundy wrote: »
    If its a van yes, but then you would have to claim actual expenses and stop claiming mileage. You can only change methods when a vehicle is changed.

    You can not claim cost of vehicle as well as claiming mileage allowance

    Completely agreed.

    If I were you I'd calculate both ways of doing it and see which one comes out best. Work out how much tax / NI that's saved and then you can include a paragraph in your letter to the client (when the accounts are finished) saying 'as a result of our tax-saving review we have been able to save an additional £xxx in tax.'

    If mileage comes out best this year it'll almost certainly be better next year (as you'll have used the AIA by next year) so you can do the same comparrison next year.

    All helps the client to see the value that you're bringing to them aside from just preparing the numbers.

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