Accounting WEB
Editorial team
Share this content

Mileage rate and capital allowances

Mileage rate and capital allowances

Could someone out there please confirm that my thinking is correct on this point? Where a self employed person claims 40p per (business) mile for use of vehicle, this is meant to cover ALL running and depreciation costs, so that one cannot ALSO claim capital allowances on the vehicle? A client of mine recently claimed to have been told by a Revenue official over the phone that he could claim the 40p AND a 25% wda on his vehicle, which I think is not correct.
I have always understood that you can only claim the wda if the alternative method for claiming motor expenses is used, viz, the business proportion of the actual running costs (RFL,insurance, fuel, repairs etc.)as measured by the business mileage travelled compared to total annual mileage. Also, one can only change from using one method to the other on a change of vehicle?
PLEASE somebody, tell me I'm not going mad here...!
Michael Harper


Please login or register to join the discussion.

22nd Nov 2004 12:14

You are correct
You can not claim the milage rate and Capital Allowances.

You can only change methods on change of car.

Thanks (0)
22nd Nov 2004 12:57

Telephone "advice" from the Inland Revenue
is not worth the paper it is written on.

A very small self employed client has decided to do his own tax return in future. It turns out that a friend at the sports club is a Revenue Officer and has agreed to help him with it. I supplied closing TB and capital allowances pool balance and now the question has come back (obviously prompted by the Revenue Officer) as to whether the CA pool balance includes the van. I hope the ex-client is happy with his new arrangements.

Thanks (0)
21st Nov 2004 14:35

Re: Mileage rate and capital allowances
Hi Michael
You're not going mad. Either that or I am too! I have always worked on the theory of either 40p per mile or apportion all actual expenses. One or the other, never a mix.

As to whether and when you can change, I don't know.

Hope that partially helps!

Thanks (0)
Share this content