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Posted Thu, 21 Sep 2023 12:55:28 GMT by Confusedbytax
I am a sole trader. My current van is owned outright by me as a personal individual. I have never claimed any of the capital cost of buying it. Almost all the mileage driven on the van is for business. I keep a record of business mileage and I use the 45 pence per mile rate to claim expenses for the annual mileage total when completing my self assessment. I also claim the simplified £10 monthly rate for home business use on my self assessment. But the van is getting old and will need replacing during this tax year 23/ 24. If I borrow money to buy a newer replacement van can I claim the monthly repayments as expenses? And in addition also process the full cost of my fuel and repair and maintenance costs in my annual expenses total? I realise that if my personal mileage is say 10% of total miles driven that I would need to reduce the amount claimed on each receipt by 10%. Or can i claim the full cost of the new van as a one off expense against this years earnings if I was to buy it outright? If i buy outright or by finance does the van get purchased as an individual or using my business name. I hope someone can advise as I am stuggling.
Posted Tue, 26 Sep 2023 10:23:03 GMT by HMRC Admin 17

Please refer  to :

Expenses if you're self-employed    .

Thank you.
Posted Thu, 05 Oct 2023 09:54:49 GMT by HMRC Admin 25
Hi Confusedbytax,
Please also  refe rto guidance at:
Claim capital allowances
If you opt for claiming the cost of the van, you cannot claim the simplified 45p per mile to cover wear and tear or vice versa.
Thank you. 

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