New client decision on claiming mileage vs expenses apportionment

SussexAccountancy

Hi

I have a new client who started self employment in Aug 13, and has asked me whether it is best to claim mileage @ the usual .45p/mile or as an apportionment of expense. Her car is used around 90% for work. I have a few questions which I can't see covered anywhere:

a)how do other MIPs deal with new clients wanting advice on the above?

a) is there a way of calculating costs as per (say) model of car to work out likely costs for the year, so that I can compare with her estimated mileage for the year - (she has told me her mileage for one week is 331, which comes in at 17,212 miles per year) - and advise her on which method to use.

b) I understand that once a method is chosen, it can't be changed till the vehicle is changed - should this mean the first year in trade is spent keeping records on both methods, to see what the difference is? ie: I can't advise her on best method, till she's done a full year in trade.

c) She has a VW Passat 1.8 litre - bought 2 years ago at £3000. If I was to use the apportionment method and charge depreciation could I capitalise the full £3000 and depreciate over 5 years, or do I need to reduce the cost price to today's (ie:resale) value?

d) She is a self-employed pysiotherapist, travelling to and from hospital, as well as to private homes. Do I need to be careful about "normal place of work" and if so, can anyone recommend any reading to me to make sure she gets the correct advice?

d) Anything else I need to consider?

Thanks very much for anyone's help! I would be interested in how other people are dealing with issues that have come up as above,


Regards


Jo

sharoneyre

I always advise my clients to log both mileage and running costs for the first year to compare and then go with whichever is te better option for them

I would use the cost of the car at today's value rather than the purchase price

Her normal place of work is where her business address is so if she goes to various homes and hospitals then I would think she would be safe claiming those journeys

paulstafford

You might want to refer to the recent ruling against Samad Samadian ( self employed medical consultant). The cirumstances with your client look quite similar.

His travel expenses from home to hospitals to see private clients have been disallowed, although I believe this is being appealed?