Trips to Garage - Business or Private

Trips to Garage - Business or Private

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When a car is used for both business and private motoring, how are trips to petrol stations and garage for servicing/repairs treated.  I would assume that if one is using the 45p/mile rate then these would be considered purely private trips.  If the car is bought through the business with only nominal private use then I assume they are business miles. I have a case which is 52% business use, can I claim these trips as necessary for the business?

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By Steve Knowles
11th May 2011 14:16

Mixed Use

The logical approach would suggest that as these are not "wholly and exclusively" for business, they must of necessity be classed as private. However surely most petrol will be bought in the course of another trip, which will in itself be either business or private, and the number of journeys for repairs/servicing is likely to be so small as to be insignificant.

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By The Adding Machine
11th May 2011 15:56

Rural living = material difference

I have a number of clients who are window cleaners, living and working in semi-rural areas, whose trips to petrol stations require a significant detour.  If you include occasional trips to the garage these add up to about 200/300 miles a year. If the car is used primarily for business at what percentage does private use become material enough to make these trips mixed use?  Or if they are always done on the way to or from work can we class them as business miles?

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By Ernest N Dever
12th May 2011 12:32

Isn't 52% a business journey?

Aren't you overthinking this?  Don't you just put all of the car running costs (including all petrol, subject to an appropriate VAT adjustment) through the accounts and then add-back 48%.  The effect is that you are only ever claiming 52% of any cost whenever and whyever it's incurred.

Using a mileage rate, if it isn't a business journey you can't claim for it.  What you can do is make sure you that your detours to fill up are made while your overall journey is a business one.  The costs of the trip to the garage for repairs/servicing is really a cost of the repairs/servicing, which is reflected in the mileage rate.

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By The Adding Machine
12th May 2011 12:53

How to arrive at 52%?

The thing is, the percentage is only 52% because we have excluded such costs at the moment. If I include trips to garage/petrol station the percentage will be 55%. This may seem trivial, but multiplied across the years and across all clients will make a considerable saving. So, even though they have a significant cumulative effect, do the revenue consider detours for petrol whilst on business non material?

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