New Client was a sole trader owned a van - for some reason never claimed capial allowances but was claiming on full cost method
Was a sole trader until May 2018 then transfered to Limited company around 20th June 2018 when he started invocing under limited company. He then invoiced one of his clients as a sole trader in July 2018. Van was not transferred to the company and is claiming the normal mileage.
He replaced tyres on his van for £700 on 25th June 2018. He says these should be tax deductible under sole trader but I am arguing the main business was transfered to the limited company before this date and the mileage rate will cover any repairs etc.
Replies (7)
Please login or register to join the discussion.
He ceased his sole trade on a particular date or he did not. You need to establish the facts.
Did you ask him why he raised an invoice as a sole trader after the company had started to raise invoices?