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.
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.
