Sole trader’s use of van for commuting

Is a sole trader treated more harshly than an employee for using a van to commute from home to work?

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  As far as employees are concerned, The 2018/19 form P11D states ‘There is no benefit charge to report and you do not need to complete this form if the van is used mainly for business travel and the only other use is for ordinary commuting’.  I can’t see that supported in the  HMRC manuals, which seem to state categorically that ‘ordinary commuting’ is private, but never mind.  My specific question relates to sole traders; does a proportion of van expenses need to be added back in the business tax computation in respect of the cost of ordinary commuting?  And would the requirement to have the van available for use in the event of an emergency callout make a difference? 

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By Accountant A
08th Jan 2020 17:02

Methuselah wrote:

 My specific question relates to sole traders; does a proportion of van expenses need to be added back in the business tax computation in respect of the cost of ordinary commuting?  

Yes (probably depending on the facts)

Methuselah wrote:

And would the requirement to have the van available for use in the event of an emergency callout make a difference? 

No

On the more general point "Is a sole trader treated more harshly than an employee ...?", whether they are or aren't in relation to this is only looking at one issue. There will be plenty of situations where the self-employed are treated more "generously" than employees in the tax code. If it's that big an issue, the self-employed individual can incorporate.

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Replying to Accountant A:
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By Methuselah
08th Jan 2020 17:05

Thank you, Accountant A. I can’t disagree with any of your points!

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Psycho
By Wilson Philips
08th Jan 2020 17:09

Have a look at EIM22795 and related commentary

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