use of car vs claiming motor expenses

use of car vs claiming motor expenses

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Self employed tradesperson has for years claimed 'use of car' in their trading accounts.

Now considering changing to claiming traditional 'motor expenses.'

I remember provisions that said once opted for one basis of revenue cost could not  change basis at a later date.?

Do any readers know and understand if this is still the case or has there been a change so that the tradesperson can instead claim motor expenses?

(I have searched online and can find nothing on this).

Thank you.

 

 

Replies (3)

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By David Ex
09th Aug 2023 10:58

From memory, it’s covered in HMRC’s Business Income Manual. Have a look there.

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By possep
09th Aug 2023 11:56

If he has claimed at 45p/25p per business mile he must continue with that until he changes vehicle and then decides what method to use going forward.

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By Hugo Fair
09th Aug 2023 14:39

".. once opted for one basis of revenue cost could not change basis at a later date.?
.. is this still the case or has there been a change so that the tradesperson can instead claim motor expenses?"

The restriction (not being able to change method) applies to any vehicle for which any method has previously been claimed.
It does not prevent the method being changed (even within tax year) IF a different vehicle is being used.

So your self employed tradesperson can either ... stick with current method OR change car.

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