Car Expenses - The Book-keepers Forum (UK)

Suffolker · Senior Member

Car Expenses

Kavittac.fao · Newbie

Hello,

Instead all this why don't you transfer your car to your business, register it as an asset, so that you can claim all the above expenses along with the depreciation.

If its not register , you wont be able to claim for above mentioned expenses & they will be treated as Drawings.

Kavitta

Suffolker · Senior Member

Thank you Kavitta. Regarding the 40p per mile do I post that from the bank account to the travelling nominal code or would I do a journal entry somehow in Sage Accounts?

Gemma12 · Veteran Member

Hi

when dealing with your car, you can eaither claim the 40p per mile or all of the other expenses,but not both - so 40p through travel and everything else through drawings, or all expenses through travel and then the 40p per mile doesnt go anywhere in the accounts as you can't claim it

one suggestion (which I did recently with a client) is keep a running record of the business mileage at 40p and also a copy of all your receipts for petrol, MOT, insurance, depreciation charge, etc and work out which is most beneficial - the later means you do have all the extra paperwork to keep - in the case of my client she was better off claiming the 40p per mile !

the problem with putting your car as a business asset is that when you come to get rid of it you may have a balancing charge or allowance for tax purposes - capital allowances (tax) are not necessarily the same rate as the one you would use for depreciation

hope this hasn't waffled on too much and confused you

Gemma

Suffolker · Senior Member

Thank you Gemma :D

Because I'm not a limited company though, just simple self employed me, am I still allowed to opt for the tax/insurance/petrol option? Without classing the car as an asset?

Thanks again

-- Edited by Suffolker at 10:39, 2008-10-17

Gemma12 · Veteran Member

Hi

if you want to claim the actual costs of petrol, insurance, MOT, etc then you will have to enter the car as an asset - can't mix and match to suit unortunately

Gemma

Suffolker · Senior Member

Thanks for your help Gemma :)

Think I'll just opt for the 40p per mile option. It seems simpler!

In Sage I'd just enter the mileage as a bank payment to the nom code travelling wouldn't I?

Thanks Again

Jo

Gemma12 · Veteran Member

Hi Jo

absolutely,
cr bank
dr travel

you could always then tuck the money away in a personal savings bank account to pay for your MOT, insurance, petrol etc !!! smile

Gemma