A sole trader charges his customers for use of a private vehicle. Is this income taxable?

Ryan Mundy MAAT
Ryan Mundy MAAT MAAT, AAT Licensed Accountant Posts: 22 New contributor ?

I just want to check that I am not missing something here.

My client occasionally uses his own motorcycle in the course of his business.

The motorcycle is privately owned.

He charges his customers £10 per hour for it's use. Amounting to just over £2,000 in 2014/15

Would I be correct in thinking this 'income' would be taxable and he should claim the 24 pence per mile for it's business use.

Thank you



  • phoenixd
    phoenixd FMAAT, AAT Licensed Accountant Posts: 68 Regular contributor ⭐ ? ⭐
    ALL his income is taxable.
  • kelsmick
    kelsmick Registered Posts: 89
    I agree with Pheonixd you would put the full amount down as that is what was earned. Regardless of how the motorcycle is owned he still earned from it, he could claim business expenses for the miles he done with the bike providing he has a record off all miles.
    Claire R
  • esteward
    esteward Registered Posts: 2
    Hi Ryan, yes the income would definitely be taxable and he should charge the 24p per mile for use of his bike. All miles should be carefully recorded as part of his accounts if claiming any business use.
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