[Avatar]

Accounting for a business vehicle

10/12/2018 17:40:19
Hello, I have been a part-time electrician for a couple of years and so far have used our family car for my electrical work and made a mileage claim as part of my tax return; I have been using cash-based accounting. If I want to buy a vehicle specifically for my business, how will I account for the expense of a vehicle when filling in my tax return?
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1285
  • Offline
  • View profile
  • Send message

Re:Accounting for a business vehicle

10/12/2018 17:49:47
Hi,

Thanks for your question.

You have not specified if this is another car or a van. You can still use the simplified mileage rate for the new vehicle under the cash basis.

If you prefer to use the actual method instead then the cost of the van would be an expense under the cash basis but you would need to claim capital allowances for the capital cost of a car.

There is more information on our help sheet 252 about this, I have given you a link below to this

HS252

I hope this helps.