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I have several questions and not sure where best to ask them? Vehicles and expenses

26/04/2019 10:32:34
I am currently in the process of trying to buy a work only vehicle. Either a van or a 4x4 and it will only be used for work. I did a webinar which confused me into thinking I could only claim a certain percentage of the cost against my earnings as expenses? Does this make any difference to whether I buy a van or "car"?
When purchasing the vehicle, i am probably going to have to borrow some money from friends and family, rather than pay interest on a bank loan, do I still claim the total cost of the vehicle against my earnings as expenses? Or do I get some sort of receipt from the loaner and put it in as an expense that way?

Although I am self employed, i occasionally need extra help so i ask self employed people to help for the day/few hours and them send me an invoice. Is this correct and legal? I don't have employees and don't want employees as don't have regular work but want to ensure I'm doing everything right.

Also, i use animals for my business (performance), i just wanted to confirm that i can put the cost of vets bills through as expenses too? And feed?
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Re:I have several questions and not sure where best to ask them? Vehicles and expenses

29/04/2019 15:03:46
Hi,

It will depend on what you purchase and if you are going to claim either mileage expenses or under Capital Allowances, as once you have chosen the method for the vehicle that is the method that you will need to use for the life time of the vehicle.

You can claim the Annual Investment Allowance if you bought equipment such as a van but not a car during the tax year. The AIA is effectively a 100% first year allowance for the business expenditure.

You can claim Capital Allowances for the car. Please note that you cannot claim Capital Allowances if you use the cash basis. The only exception are cars.

Please refer to the following link:

Capital allowances and balancing charges: HS252 Self Assessment helpsheet

This help sheet will provide examples of the AIA and Capital Allowance.

Capital Allowance Manual 23081

Capital Allowance Manual 23500

If you decide to claim the mileage rate then please refer to the following:

Business Income Manual 75005


You will only be able to claim relief on a loan if from a bank, alternative finance payments and other business loans. No relief is due for a personal loan.

Business Income Manual 45665

Business Income Manual 45780

If you invoice an individual to assist you then you will be able to claim this as an expense.

Please refer to the following link:

Business Income Manual 37735

If the animal’s vet bills and food satisfies the wholly and exclusively for the purpose of the trade test then yes you can claim this as an expense.

Please refer to the following link:

Business Income Manual 42105

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