Vehicle purchase?

29/04/2019 14:28:44

Old van gave up and committed to scrap yard. I received a small amount of cash for the car... so will need to add this as income to my tax?

In regards to a new to me vehicle, I had already got finance for some personal items so opted to use a proportion of this to purchase a new van. So am now wondering.how I put this in my return. The loan was in my personal name and not for the business, the van is purchased in my business name, as is insurance, tax etc. It is solely for.business use. Note I use a cash basis accounting.

Also what is the best way to record fuel in cash basis, I had previously been advised to just record fuel receipts.

Thanks in advance


Re:Vehicle purchase?

30/04/2019 06:49:08

Where you have already claimed the full cost of the van against your business income, you will add the cash received for scrap in as part of your income.

Regards the new van, although the initial loan was for personal use, you can claim the amount you paid for the business van as expenses against your business income.

You have 2 options for fuel now that you have a new van for business purposes.

You can either claim simplified mileage rate at 45p per mile for the first 10,000 business miles and 25p per mile thereafter. This will cover all other expenses with regard for your van and you would not then claim any other expenses, or the cost of the van.

Otherwise you would record the actual cost of fuel used, the cost of the van as already specified, the cost of insurance etc.

Vehicle purchase?

02/05/2019 07:16:01
Thank you that is useful