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I am thinking about buying or maybe leasing a new van . Just wondering if this could be tax deductible from the rental business at all ?
I can only give you what I do on the advice of my Accountants
I run a fair size BTL business both in a company name and in my own name
I run a Landover defender
If I use it for business in my own name I claim 45P per mile
If I use my Landover for the Company I charge 45p per mile as a director
If you run the new van via the company you can not use it for personal use otherwise its taxable
I think its far easier claiming mileage and drive the car you want to drive with a lot less hassle and complications
But if your running a company and its vat registered it may work well
but you need to take accountants advice
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Hello Pound behind, we are in this same situation and looking to purchase a van, potentially through contract hire. Going to look at a VW transporter today
Looking in to this ( for 6 hrs yesterday!) I note that as a sole trader you can claim as a capital allowance and use the AIA (google) over the first or several years. Personal use is ‘restricted’ so you would need to keep a log book . Just waiting for our accountant to get back to me on this point as then in a position to weigh the AIA relief against the 45p per mile route (and s.24 implications)
If you have a car and do the 45p route you can offset loan Interest on a CAR ... I’m not sure about loan interest on a van but the 45p does need to cover maintenance and repair to a car/van etc. Up until now my accountant has being Using the 45p route thus far.
Now we need a van. Car rules are different to vans as you are likely already aware.
With a Ltd co. It’s based on if you are vat registered this is not my area.
Thankyou for replies
With regards to the 45p per mile you allowed to claim, how can this be worked out exactly?
For example say you make 20 trips a year to your properties how can you keep a viable record of this?
Also trips to builders merchants etc to buy supplies.
Buy a mileage log book and record all your journeys, dates etc and amount of miles, postcodes also if you are very conscientious.
Miles done in tax year X 0.45 = deductible expense
I keep a log to and from and the reason and the mileage and any parking fees
10000 miles a year at 45p
after that 20p mile I think
if the property is in your own name
If your working for your company 45P per mile and any parking fees
Brilliant, Thanks for advice. I have never bothered claiming mileage allowance before i guess i have missed out.
45 p / Mile up to the first 10,000, thereafter, mileage @ 25 pence / mile.
I refer to all my receipts at end of tax year and calculate the mileage to each store - location. ( provided you haven't got any personal use items on THAT receipt..
Amazingly, you are not allowed to use the £0.45p/£0.25p rule.
Landlords are specifically excluded. I assume incorporated one's will be different.
I therefore keep a basic P&L for my cars for the year:
Road Tax £300
Total miles 10,000
"Exclusively Property Miles 3,000
Total cost £3,800
Property use (30%) £1,140.
If you are not incorporated I would recommend this method.Paul
where did you get that from Paul, its Not been the advice of a number of accountants I've spoken with.
You are 100% wrong Landlords can claim 45p per mile
your info is misleading