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sambo

Simplified expenses

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sambo

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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Eclipse

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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rugbywolf
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?

 

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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rshandyman
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.

I believe that includes depreciation

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sambo

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!)

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rugbywolf
I believe that includes depreciation

 

But they don't know the value?

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rugbywolf
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!)

 

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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