Simplified mileage

knowledgeispowerknowledgeispower Just JoinedRegistered Posts: 31
Hi all,

quick question...I know that simplified mileage includes petrol, service, mot, road tax and insurance.
What if client (courier driver) buys a whole load of tools as he is fixing his own van. would these tools be all disallowed as well??

thanks in advance

V

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,031
    Technically I would say it is included in the 45p as maintenance costs.
    However I would question whether the claim for mileage is the most efficient if the van is used mostly for business?
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    Thanks MarieNoelle, do you mean it would work out 'better' if I didn't use the simplified calculation, but would add up petrol, service etc? It is used for business only as he has a small car for personal use.
    Thank you :-)
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,031
    Has he not claimed CA on his van?
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    He has bought the van last sept/oct - when he started courier-ing so I've not finalised anything yet. it was £9k and he is looking to keep it for a couple of years when it will prob sell for about £5-6k...according to my calc, simplified mileage works out to be more as he's doing around 50000 miles/year...but I've not added service into the calculation thou...so not sure anymore...what shall i do? :-/
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,031

    He has bought the van last sept/oct - when he started courier-ing so I've not finalised anything yet. it was £9k and he is looking to keep it for a couple of years when it will prob sell for about £5-6k...according to my calc, simplified mileage works out to be more as he's doing around 50000 miles/year...but I've not added service into the calculation thou...so not sure anymore...what shall i do? :-/

    Yes just run 2 calculations and see which is most beneficial.
    Once you have chosen a method you are stuck with it until the van is sold.

    burgknowledgeispower
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    Thank you MarieNoelle :-)
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,031



    What if client (courier driver) buys a whole load of tools as he is fixing his own van

    V

    boywonder said:

    The tools can be claimed separate to the mileage.

    Boywonder made me wonder. What kind of tools are we talking about if the amount is material?
  • BertieBertie West Midlands Registered Posts: 376
    > @knowledgeispower said:
    > What if client (courier driver) buys a whole load of tools as he is fixing his own van. would these tools be all disallowed as well??

    > @MarieNoelle said:
    > Technically I would say it is included in the 45p as maintenance costs.

    I would agree with @MarieNoelle viewpoint.

    To me buying new tools to perform maintenance falls under what the MAP covers.

    If you have to buy a new oil filter, fan belt or other, that too would be disallowed. I do appreciate that there is a difference between a 'part' and a 'tool'.

    I would happily be proved wrong.
  • KernowAccountantKernowAccountant Settling In Nicely Registered Posts: 120
    Enter a nerd...

    The legislation is at s.94D - s.94G of ITTIOA 2005.

    Where a deduction at a fixed rate is made under s.94D in respect of a vehicle, s.94D(4)(a) dictates that: "no other deduction is allowed...in respect of the qualifying expenditure".

    'Qualifying expenditure' is defined in s.94D(6) to mean: "any expenditure incurred in respect of the acquisition, ownership, hire, leasing or use of the vehicle other than incidental expenses incurred in connection with a particular journey".

    So, no - if claiming a fixed rate deduction in respect of the vehicle no further deduction is available in respect of its maintenance (e.g. tools and/or parts).
    MarieNoelleTaxManager
  • BertieBertie West Midlands Registered Posts: 376
    Healthy debate is good.

    The poster mentions one vehicle so my answer / thoughts are inline with such.

    If there are two vehicles, one actual, one MAP yes I'd agree with allowing tools for the maintenance of the vehicle.

    Any tools bought for the trade would be allowable, I'm not sure why a courier would need mechanical tools though - would they pass the wholly and exclusively test?
    MarieNoelle
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    Thanks all, makes sense. I was more on the no side but wanted to double check. brake pads and wheel baring etc I've put straight to disallowed, but wasn't sure about tools, i.e I'm talking actual electric drills etc. The van is an old banger (hence the price), and he's able to fix it, so that's why all the tool purchase.
    Thanks again
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