New client and car quandary

jilt

Am just trying to get this straight in my head. I took on a new client who had bought a local cafe business. Previously she worked as a barrister. Previously lived and worked out of my area and had an accountant who filed her VAT and tax returns. Has a car which was used 50/50 for business/private, fuel scale charge paid and 50% CA claimed.

Not doing any barrister work but still receiving income from the barrister work as it can be months down the line before they get paid for work. Pro-forma invoices raised on completion of the work and tax invoices raised when paid.

Running cafe as a sole trader and using the car for cafe related business as well as private. Last fuel receipt for barrister work was July, cafe opened in August. Some fuel receipts put through cafe business and paid from business bank account. Is it the individual that is claiming the CA rather than the business? What I mean is can I continue to claim CA on the car regardless of which business it is used for, although I doubt very much there will be any barrister work undertaken at all, and put the running costs through the cafe's books?

Just the one vat registration as she's a sole trader so will continue to pay the fuel scale charge.

With regard to the barrister income, as she's no longer undertaking any barrister work would you just include that income in box 16?

Maybe I'm over complicating things just wanted a fresh pair of eyes on this!

T.C.

Is there really any running costs for the cafe? Or is 50% too high. Unless they are delivering food, or shopping regularly using the vehicle, then only a small proportion would be business use....yes?

jilt

She uses the car for shopping, trips to bank, printers etc so there is business use. It's not as high as 50/50 now of course because obviously she uses it to and from work as well.

T.C.

That's fine, but the to and from work is not business use. Just the trips to bank, suppliers etc. I would get them to check out mileage before you decide on the split.