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Van contract hire S/E

Merhods of charging motoring expenses

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My lad is a self employed chippie (not vat reg).

 

He is about to contract hire a van.

 

I am trying to decide which way to deal with his motoring expenses.

 

The simple way is claim nothing against his business income but expense 45p/25p. Parking etc still claimable.

 

In the alternative can I:-

 

a) Calculate the entire costs of van (hire, road tax, petrol, maintenance) and charge this against profit. Then on his tax return take a benefit of the van scale charge and the fuel scale charge.

 

b) As above but pro rate the personal usage (approx 17k/very little) and add that back.

 

Personal use is expected to be fairly low, however an "it is nil claim" would be unlikely. He is bound to do some. He does have a car though.

Replies (8)

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By rmillaree
11th Oct 2021 19:54

can you confirm whether business is limited company or sole trader.

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By ASB1960
11th Oct 2021 20:02

He is a sole trader.

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Replying to ASB1960:
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By Paul Crowley
11th Oct 2021 21:10

Never had a problem claimimg either mileage ot true costs where there is a genuine car
By that I mean a car in his name, not Wife's
But if genuinely using for private use figure it out on real private miles

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By Bobbo
12th Oct 2021 14:33

Admittedly I don't get involved in personal tax, but what on earth does "Then on his tax return take a benefit of the van scale charge and the fuel scale charge." mean?

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Replying to Bobbo:
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By Paul Crowley
12th Oct 2021 14:49

It probably means that OP is confusing self employment with PAYE employment

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Replying to Paul Crowley:
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By ASB1960
12th Oct 2021 18:28

Wondering whether the same can apply to the proprietor as it would to their employees. No it would appear.

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Replying to ASB1960:
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By Hugo Fair
12th Oct 2021 19:09

Strictly speaking, Paul's comment about you "confusing self employment with PAYE employment" is even more fundamental than your interpretation.
The point being that they are two entirely different types of employment (each with their own rules, allowances, etc) ... AND that therefore your son cannot be both at the same time in one role.
This will become even more relevant if in the future he incorporates his business - but for now he is self-employed and so should avoid contemplating any options that are only pertinent to an employee of someone else (aka PAYE employment).

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Replying to Hugo Fair:
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By ASB1960
12th Oct 2021 19:49

I do get that. Honest.

Perhaps I could have phrased that part of the question differently. But that would have been predicated on being certain of the answer

"Is it different ?"

"Yes".

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