Simplified Expenses For Motor Vehicles
There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses regime is not available to limited companies or business partnerships involving a limited company.
The fixed rate deduction can be used instead of working out the actual costs of buying and running your vehicle, e.g. insurance, repairs, servicing and fuel. The use of the simplified flat rates is entirely optional. However, once a decision is made to use the simplification for a specific vehicle, this must continue to be used for a vehicle as long as it is used for business purposes.
Under simplified expenses, the following flat rates per mile available:
- Cars and goods vehicles first 10,000 miles 45p
- Cars and goods vehicles after 10,000 miles 25p
- Motorcycles 24p
The self-employed can continue to claim for other costs not covered by the flat rate for mileage such as parking, tolls and congestion fees as well as other separate travel expenses such as train journeys.
Posted by Cassey Nixon on
17th September 2019
What is Capital Gains Tax incorporation relief?
If you own a business as a sole trader or in a partnership, a Capital Gain will arise if your business is transferred into a company structure. The gain will be assessed by reference to the market value of the business assets, including goodwill, at the date of transfer. This could give rise to a […]
New £20 note unveiled
The Governor of the Bank of England, Mark Carney, has unveiled the design of the new £20 note which features the artist JMW Turner. The new note will be launched on 20 February 2020 and will join the current £5 and £10 notes in being printed on polymer, a thin flexible plastic. The new plastic […]