Simplified expenses

Discussion in 'Managing Your Business' started by sambo, Feb 23, 2015.

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  1. sambo

    sambo Member
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    Have been looking tonight at the various tax options etc and thought the HMRCs Simplified Expenses was quite an attractive option and wondered what everyone else's thoughts were?

    If I drove say 10,000 business miles I could off set £4500 against my tax liability

    If I claimed old school it would be say

    £2000 fuel
    £400 insurance
    £500 Servicing/Breakdowns etc
    £250 Tax
    £3150 Total

    Am I missing something here?
     
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  2. Eclipse

    Eclipse Well-Known Member
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    You can depreciate the cost of the vehicle over 5 years if you've paid cash for it, so 20% per year, also if it's on finance you can claim for the payments too.
     
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  3. rugbywolf

    rugbywolf Forum Addict
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    I would think that if you are getting the 45p a mile rate, then this will not include depreciation of your vehicle, so will have to add that into your figure.
     
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  4. rshandyman

    rshandyman Forum Addict
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    I believe that includes depreciation
     
  5. rshandyman

    rshandyman Forum Addict
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    Cash basis looks simple
     
  6. sambo

    sambo Member
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    vehicle is only worth a grand so would still only be a few hundred quid off at those mileages. If I ever save up for a posh van I'll swap round (although I would think that if my window cleaner pulled up in a nearly new van I was paying too much so don't want to do the same!)
     
  7. rugbywolf

    rugbywolf Forum Addict
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    But they don't know the value?
     
  8. rugbywolf

    rugbywolf Forum Addict
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    Got a bloke round our way drives round in a big 4 x 4. Not good. There are two side to this. I used to work in the racing business (bookmakers), and the boss drove one of these low fast jobs. He said that driving around in an expensive car will make the punters feel confident betting with him (in getting paid out). We were moving house one time and were looking for a removal firm, and this local chap rolled up in a swish Jaguar, and my missus said "I'm not having him".
     
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