Motoring Expenses

arctictree

Can anyone remind me how much of your motoring expenses can you offset against tax? At the moment I am doing 50% but a friend told me I could offset much more. Is there a general rule? Cant seem to find it anywhere....

barneystinson

arctictree wrote: »

Can anyone remind me how much of your motoring expenses can you offset against tax? At the moment I am doing 50% but a friend told me I could offset much more. Is there a general rule? Cant seem to find it anywhere....

The rule is that in computing your taxable profits you can deduct expenses incurred wholly and exclusively for the purposes of your trade.

What the correct amount or percentage is will depend on your own circumstances.

Muckit

2/3 is the generally accepted amount. Even part time. We are farmers. Go open your boot and then open your work colleagues in the day job. Herding , running to farm store, discussion meetings etc etc. Unless u work a disproportionately long distance from home.

Now it is a self assessment tax return so everyone should satisfy themselves that they can stand over their calculations even if using an accountant. This is what you are signing off on.

arctictree

A friend (non-farmer), told me at the weekend that I can't claim for both mileage and vehicle maintenance (tyres, servicing etc). Is that true?

J.O. Farmer

arctictree wrote: »

A friend (non-farmer), told me at the weekend that I can't claim for both mileage and vehicle maintenance (tyres, servicing etc). Is that true?

Are you talking about claiming mileage like civil service rates. That sounds right if so. Mileage is to cover those costs not to pay for the work driving.

arctictree

J.O. Farmer wrote: »

Are you talking about claiming mileage like civil service rates. That sounds right if so. Mileage is to cover those costs not to pay for the work driving.

Yes, thats right. Should I be claiming for diesel then instead of mileage?

J.O. Farmer

arctictree wrote: »

Yes, thats right. Should I be claiming for diesel then instead of mileage?

Yeah you can claim for diesel and all the other costs of running the vehicle just so long as you make an allowance for personal use unless the vehicle is exclusively for the farm.

exaisle

A post in the Taxation forum might prove more useful.

You can also claim the same proportion of wear and tear on the car as you're claiming as a proportion of the motor expenses. This will depend on the emissions of the vehicle. Speak to an accountant.

Muckit

Capital allowance on motor vehicle