Buying a vehicle when self employed? Using a loan

[paulamcb]

Hi

I currently have a car which i use for personal and business use, this is my only vehicle.

 

I am replacing this car with a sign written business van, again i will also be using it for personal use.

 

I am borrowing the money for the van.

 

Can you tell me how i put this through the books,

 

 

do i put the loan through and the cost of the vehicle or not?

 

 

Do i still work purely on the mileage allowance of 45p per mile that i use for business?

 

Appreciated, thanks

[ericsbrother]

You can write down the interest charges that you pay on the loan and you can write off the capital at the amount allowed, which is a piffling 8% of the original price per annum. (the govt believes that they will save the planet by making the self-employed carry all their tools of their trade and stock on the bus)

For running costs you can either calculate exactly what the costs are and offset them against your earnings or you can use the 45p/mile. The latter is simpler otherwise you will have to justify the proportions of business and personal use and keep receipts for fuel, servicing etc.