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Sole trader claiming tyres as expense

Is this tax deductible

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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)

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Psycho
By Wilson Philips
19th Jan 2020 19:29

He ceased his sole trade on a particular date or he did not. You need to establish the facts.

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By taxwizard
19th Jan 2020 22:17

Only evidence is the invoicing under limited company to his regular clients. I think he invoiced his customer in error under the sole trader business. Only one invoice was raised under sole trader invoice after purchasing the tyres. Obviously he will say that tyres were brought under the sole trader business when the tyres have been used entirely by him and charged mileage to the limited company for the whole period.

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Replying to taxwizard:
Psycho
By Wilson Philips
20th Jan 2020 09:04

Did you ask him why he raised an invoice as a sole trader after the company had started to raise invoices?

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Replying to Wilson Philips:
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By taxwizard
20th Jan 2020 15:43

Yes because this particular customer didn't change the details on their system and deducted CIS under his sole trader business.

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By atleastisoundknowledgable...
20th Jan 2020 08:16

I agree with you.

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By taxwizard
20th Jan 2020 15:47

Sorry just one related question just before he started to trade under the limited company he paid for van insurance. Would the whole cost be tax deductible under the sole trader business ?

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By taxwizard
20th Jan 2020 15:47

Sorry just one related question just before he started to trade under the limited company he paid for van insurance. Would the whole cost be tax deductible under the sole trader business ?

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