Because I was told I can only claim up to 50% business use of the 6% (higher emissions) of the 42k car purchase. From my research this is incorrect and it is a fair proportion of business/private use, which I would place at 75%. I was seeking to clarify this.
Yes, an accountant I have paid for 4 years, I was told i can only claim up to 50% business use of the (now established) 6% of the 42k car purchase - to be fair the accountant did tell me orginally 6%, i was told recently by a bookkeeper friend it was 8% for that higher level of emissions.
Yes, the Ltd company is circa 1 year old and there are legacy contracts with the sole trader business. Gradually everything will be moved until Ltd co.
There is duplication but only for record keeping and tax returns. It is an online business (or two businesses). Subcontractors have legal contracted with both the Ltd company and sole trader.
To give you some context, you're looking at circa 35K revenue billed via Ltd company and circa 3k as sole trader.
I'm just trying to make the billing system in place bulletproof. Neither are VAT registered.
Providing a bit more insight, it is a business providing subcontractors, so the same subcontractor could potentially be invoiced via the Ltd company for a piece of work and then invoiced by the sole trader business the next week for a separate piece of work. Make sense?
My answers
Because I was told I can only claim up to 50% business use of the 6% (higher emissions) of the 42k car purchase. From my research this is incorrect and it is a fair proportion of business/private use, which I would place at 75%. I was seeking to clarify this.
Yes, an accountant I have paid for 4 years, I was told i can only claim up to 50% business use of the (now established) 6% of the 42k car purchase - to be fair the accountant did tell me orginally 6%, i was told recently by a bookkeeper friend it was 8% for that higher level of emissions.
Thanks for being so very helpful.
So you can expense 75% of £42k x 6%? and 75% of all motoring expenses i.e. fuel, insurance, road tax etc
Yes, the Ltd company is circa 1 year old and there are legacy contracts with the sole trader business. Gradually everything will be moved until Ltd co.
There is duplication but only for record keeping and tax returns. It is an online business (or two businesses). Subcontractors have legal contracted with both the Ltd company and sole trader.
To give you some context, you're looking at circa 35K revenue billed via Ltd company and circa 3k as sole trader.
Combined income is not even close to the VAT threshold.
I'm just trying to make the billing system in place bulletproof. Neither are VAT registered.
Providing a bit more insight, it is a business providing subcontractors, so the same subcontractor could potentially be invoiced via the Ltd company for a piece of work and then invoiced by the sole trader business the next week for a separate piece of work. Make sense?