Question:
I am a self-employed car mechanic and also work as a full-time employee. I bought a new car for the price of £11,000 with a payment of £2,500 with the remainder being financed with monthly payments of about £230. I use the car about 40% of the time for business and mileage is rather low at the moment. I am not registered for VAT and my turnover is well below the VAT threshold. What can I claim?
Arthur Weller replies:
Simply put, you should make a calculation of all your motoring expenses and claim 40% as an allowable expense for tax purposes. You can also make a calculation of the full capital allowances and claim 40% for tax purposes. There is an alternative option to claim 45p per business mile - for the first 10,000 miles, and 25p per business mile thereafter.
