Sole trader & car finance

jeaniebeanie

Hi, hubby is a sole trader builder he drives a van to work everyday. We thinking of changing our family car ( due to expansion ) some kind of jeep thing & wondering if this can be a business expense? The car is used 50 % of the time for his business use, & he's put up serious mileage in our old car because of his business. I know if he changed to a business he could get a company car but that's a whole other ball game.

Gloomtastic!

You can claim something like €23.5k on a car as a sole trader.

adrianw

Sole traders who use their own private car can claim actual expenses incurred.

Gloomtastic!

Yes, you can claim the €23.5k in buying the car plus 50% of all car expenses. When he's doing his books, split car expenses from travel expenses like cabs etc and at the end of the year just deduct the 50% from the car total. If he's VAT registered you can only claim VAT on diesel but not petrol.

adrianw

Gloomtastic, I don't think that is correct. There has to be a justification for the expenses claimed. Maybe 50% is too high or even too low.
Also with the €23.5k are you referring to Capital Allowances? That only applies on the basis the vehicle meets CO2 emission requirements?

Gloomtastic!

adrianw wrote: »

Gloomtastic, I don't think that is correct. There has to be a justification for the expenses claimed. Maybe 50% is too high or even too low.
Also with the €23.5k are you referring to Capital Allowances? That only applies on the basis the vehicle meets CO2 emission requirements?

If he uses the car 50% of the time for business then claim 50% of the expenses.

I did check with my accountant, when I had one, that if the vehicle was branded with company logo/details then it is working for you 100% of the time so 100% of the car expenses are claimable. He agreed. However, even though my car is branded I'm still only claiming 85% as business usuage, as I have done before it was branded and that too was ok with my accountant.

Never heard of CO2 conditions when buying a car before. I don't spend anything near that amount when I buy a car so maybe that's why I've never had a problem.

adrianw

The livery thing is interesting. I've never come across that. It sounds like a good argument to me.