A company car as a sole trader - UK tax advice for Business Owners

Описание: http://www.incauk.biz/
Hi, I'm Graham from Inca Chartered Accountants. We get asked a lot about vehicles and businesses. So in this video I'm going to focus on your business as a sole trader and whether you put your car or your van through the business. In the next video I'll talk about companies and their cars and vans.

So if you are a sole trader and you are VAT registered you don't have a choice. The car or the van is going through the business whether you like it or not. So that's the cost of buying it. The cost of maintaining it - all the fuel, the road licence and the insurance is all going through the business but you still have to keep mileage records because you are only going to get tax relief on the business proportion of it. Most people turn round and say "Are well I did 95% of my mileage is business mileage." Ok, so what if the tax man says prove it. Where's your records? How can you. So keep your mileage records, put all the costs through the business and your accountant will deal with the adjustment at the year end. If you are not VAT registered you can actually choose. You can either choose to just claim mileage, that's at a rate currently of 45 pence per mile, or you can put the vehicle through the business. The good thing there is, is every time you change the vehicle you can change the way you want to account for it. So that's vehicles and sole traders. In the next video I'll talk about it with companies.