How do I claim expenses for the business using my car?

Oct 5

There are two ways to calculate the car or van costs you can claim for a private vehicle that is used for business.

Method 1

The first method is to keep a mileage log and claim the Approved Mileage Rate per mile - currently 45p/mile (for the first ten thousand miles). NB it is possible to also reclaim some VAT on these rates.

Method 2

The alternative is to calculate your entire mileage costs of running the vehicle for a year (including petrol, repairs, road tax, insurance etc) and also keep a mileage log for the year that will give you the % of your vehicle use to apply to this total cost.

Damion Viney

Damion Viney has been supporting business owners to make a success of their ventures since 2011 when he set up Co-. Blogs cover all aspects of business development. He is co-author of Improving the Numbers.

linkedin.com/damion-viney

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